Here’s the big question from consumers for 2025: Where will interest rates go?

One thing we already know for sure. Don’t expect a return to super cheap money.

The Federal Reserve has been cutting its benchmark rate in response to falling inflation, but stubbornly high prices for housing, energy and food remain problematic. As a result, the Fed has scaled back its expectations on rate cuts for this year.

Inflation just isn’t cooperating well enough for the Fed to cut rates more aggressively. So in 2025, expect modest declines in rates for mortgages, auto loans and credit cards, according to Bankrate’s chief financial analyst Greg McBride.

“Even with those declines, we’re not going back to a low-rate environment,” McBride said.

If you’re planning on borrowing money this year or wondering if those high-yield savings account rates will stick around for a while, here are McBride’s forecasts on where rates will land on average in 2025.

• Mortgages

The 30-year fixed rate: 6.5%

Home equity line of credit (HELOC): 7.25%

Home equity loan: 7.9%

McBride said it will be a bumpy year for mortgage rates. According to his analysis, the average 30-year fixed mortgage rate will remain in the 6% range for most of the year, elevated by concerns about inflation and government debt.

“The moral of the story is if you are sitting back waiting for 5% or 4% mortgage rates, 2025 is not going to bring that,” he said.

So should you buy now?

You can, but you should focus on affordability. McBride suggests keeping your monthly payment, including taxes and insurance, to about 30% of your gross or pretax pay.

And for those thinking about tapping home equity, note that borrowing against it will still be costly in 2025. If you need this money, McBride said, look for introductory offers on a HELOC.

• Auto loans

Five-year new auto loan: 7%

Four-year used auto loan: 7.75%

McBride expects some movement down on auto loans but warns: “It’s not going to make an unaffordable vehicle suddenly affordable.”

According to Edmunds.com, a car-shopping website, the average price for new vehicles in 2024 was $47,465. The cost for used vehicles was $27,252. Additionally, a sizable share of car owners have monthly payments of $1,000, above 17%.

Edmunds also reported that an increasing number of consumers with auto loans had negative equity in the third quarter of last year, meaning they owed more on their vehicles than they were worth.

• Certificate of deposit/savings accounts

1-year CD: 1.25%, national average

5-year CD: 1.35%, national average

Savings account/money market: 0.35% (national average for savings) and 0.40% (national average for money market account)

Many online banks outdo the national average. But you’ll have to shop around to find high-yield savings accounts earning between 3% and 4%. McBride predicts the following for the highest-yielding accounts offered nationally.

1-year CD: 3.7%

5-year CD: 3.95%, nationally available

Savings account/money market: 3.80%

“It’s going to be a good year for savers,” McBride said. “Money markets and CDs will continue to be well ahead of the rate of inflation.”

• Credit Cards

Credit card: 19.8%

McBride said that interest on existing credit card debt will follow the Fed cuts. Even so, falling to just under 20% still means this is expensive debt.

Do what you can to get the credit card debt paid off. One strategy is to transfer your balance to another card with 0% interest.

A promotional offer that imposes a deadline may also help you pay off debt faster. The best offers give you 18 to 21 months to pay off the debt.

Make this the year you attack this debt. Once you get free of revolving this debt and instead pay off every month what you charge, the rate doesn’t matter.