Who believes in rate cuts in 2025 when inflation is double the average for the last 20 years?

With inflation running twice the 20-year average, the case for rate cuts in 2025 looks increasingly weak. The Fed’s 2% target remains distant, and despite market hopes, history suggests sustained higher rates may be the new norm.

If mortgage rates today are near their historical average (~5-7%), why assume they’ll drop significantly? The bigger question: Are we adjusting expectations to reality, or still hoping for a return to an artificially low-rate environment?

What’s your take—where do you see rates heading in 2025?