Top Economist Predicts US Mortgage Rates Through 2028
Summary
A top economist from the Mortgage Bankers Association predicts that the U.S. mortgage rates will stay above 6% until the end of 2028, due to a growing federal deficit and high inflation. Despite expectations that rates might fall, continued economic uncertainty and fiscal pressures make further declines unlikely.Key Facts
- Mortgage rates are predicted to remain between 6% and 6.5% through 2028.
- The federal deficit and high inflation are key reasons for maintaining high mortgage rates.
- Mortgage rates have been between 6% and 7% for the past three years.
- The rates increased following the Federal Reserve's efforts to combat inflation in 2022.
- Despite some Federal Reserve rate cuts, mortgage rates have not significantly decreased.
- The average 30-year fixed mortgage rate was 6.27% as of mid-October 2023.
- The Federal Reserve affects mortgage rates indirectly by influencing bank borrowing costs.
- A government shutdown and other economic factors could impact the Federal Reserve's future actions on interest rates.
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