What’s Keeping Mortgage Rates From Falling? (Here’s the Truth)

If you’ve been asking yourself what’s keeping mortgage rates from falling, you’re not alone. Many folks across Southern NH are wondering the same thing. You want to buy a home, sell your current one, or maybe even both. But those rates just won’t drop like we hoped.

Let’s break it down in a simple, easy-to-understand way. We’ll go over what’s really going on, how it affects the market, and what you can do right now—even if rates stay put.

Why Do Mortgage Rates Even Go Up and Down?

Before we get into what’s keeping mortgage rates from falling, let’s look at how they work. Mortgage rates go up or down mostly because of these big things:

• Inflation: When prices rise, interest rates usually go up too.

• The Federal Reserve: This group helps guide the economy. If inflation is high, they raise something called the federal funds rate. It doesn’t directly set mortgage rates, but it affects them.

• Investor Confidence: When investors feel nervous about the economy, they often buy safer stuff like U.S. bonds. This can make rates go down—but not always.

Pretty wild, right? All these moving pieces work together. Sometimes they make rates jump. Other times, they keep them stuck high.

The Big Question: What’s Keeping Mortgage Rates From Falling?

There are a few key reasons mortgage rates are staying high, even though many of us hoped for better news.

1. Inflation Isn’t Going Away Fast Enough

Inflation is like that annoying guest who stays too long. It’s been slowing down, but not quickly. Prices for food, gas, and goods are still higher than they were just a few years ago.

Because of this, the Federal Reserve doesn’t want to lower rates too fast. If they do, inflation might shoot back up. So, they stay cautious, and that keeps mortgage rates from falling.

2. The Fed Is Playing It Safe

The Fed has raised rates a lot in the last couple of years. It’s helped cool inflation a bit, but not completely. Right now, they’re holding back on cutting rates.

Why? They want to make sure inflation is really under control. They don’t want to lower rates too soon and mess things up. So, we’re all in a “wait and see” game for now.

3. The Economy Is Stronger Than Expected

Strangely enough, good news can keep mortgage rates high. Unemployment is low, and people are still spending money. That tells the Fed and investors that the economy is strong.

So, they don’t feel the pressure to drop rates just yet. If things were worse, we might see rates fall quicker.

4. Global Events Still Matter

Wars, trade talks, and world markets all affect U.S. mortgage rates. Uncertainty overseas can cause rates to rise or freeze. It’s another reason what’s keeping mortgage rates from falling can be tricky to explain.

Even if things look stable here in Southern NH, the global picture might say otherwise.

What This Means for Southern NH Home Buyers

If you’re shopping for Londonderry houses for sale or checking out other Southern NH houses for sale, you may be frustrated. Higher mortgage rates mean higher monthly payments.

But here’s the good news: You don’t have to wait. Smart buyers are still making moves. Why? Because…

• Home prices could keep rising.

• You can refinance later if rates go down.

• There’s less competition right now.

If you find the right home, it could still be the perfect time to buy—rates or no rates.

What This Means for Southern NH Home Sellers

Selling your home right now? You might think no one’s buying. But that’s not quite true.

Sure, some buyers are waiting for rates to drop. But the serious ones? They’re still out there. They’re ready, pre-approved, and looking for homes like yours.

Plus, homes in Londonderry and across Southern NH are still in demand—especially well-staged, well-priced homes.

If you price it right and work with the right REALTOR, you can absolutely sell, even with higher rates.

Tips for Buyers Dealing With High Rates

Even if mortgage rates seem stubborn, you can still win. Here are some tips for home buyers:

1. Shop Around for Rates

Different lenders offer different rates. Even a small difference can save you thousands.

2. Work With a Local REALTOR

A Southern NH REALTOR knows which homes are worth it—and which ones aren’t. That insight helps big time.

3. Look for Buy-Down Options

Some sellers will help pay to lower your rate (called a rate buy-down). Ask about this when making offers.

4. Focus on Monthly Payment

Instead of obsessing over the rate itself, think about what you can comfortably afford every month.

Tips for Sellers Navigating Today’s Market

If you're putting your house on the market, here’s how to stand out—even when rates are high:

1. Price It Right

Overpricing can scare off buyers. A well-priced home will still sell fast in Southern NH.

2. Stage Your Home

Make it shine. Clean, decluttered, and cozy homes leave the best impression.

3. Highlight Value

Make sure your REALTOR shows off the best features—updated kitchens, finished basements, or big backyards.

4. Be Open to Offers

Stay flexible. A little wiggle room might help you lock in a great deal with serious buyers.

Should You Wait for Rates to Drop?

It’s tempting to wait. But here’s something to think about…

• What if rates drop—but prices go up? You may not save anything.

• What if rates never drop like we expect? You’ll have waited for nothing.

• What if you find your dream home now? Will you be okay passing it up?

Buying or selling isn’t about chasing the perfect moment. It’s about making the right move for you.

Local Real Estate Still Has Strong Value

If you’re focused on Londonderry houses for sale or Southern NH houses for sale, the market still has great homes, great value, and long-term benefits.

These areas continue to attract buyers because of their charm, schools, and easy access to highways. Even with today’s mortgage rates, people want to live here.

Homes in Southern NH have held their value—and in some towns, prices are still climbing.

What You Can Do Right Now

You don’t have to wait and hope for better rates. Here’s what you can do:

• Talk to a lender: Find out your buying power today.

• Work with a local REALTOR: Get help finding the right home—or selling fast.

• Make a plan: Know your budget, timeline, and must-haves.

So, what’s keeping mortgage rates from falling? The short answer: inflation, Fed policy, a strong economy, and global events.

But here’s the better question—what are YOU going to do next?

If you’re ready to explore Southern NH houses for sale or want help pricing your home in Londonderry, I’ve got your back. We can make a plan together, no matter what the rates are doing.

🏡 Thinking about buying or selling in Southern NH?
Let’s talk! I’ll walk you through your best options, answer your questions, and help you feel confident about your next move.

If you need more information on what’s keeping mortgage rates from falling, or are ready to sell your house give us a call at (603) 883-8840. You can also sign up for your dream home search or reach out to Our Agents for more information. We’d love to help you with your real estate needs.