Mortgage rates aren't likely to fall any time soon — here’s why
Published On Jan 21, 2025, 2:54 PM
Mortgage rates, which recently rose above 7%, are expected to remain high, possibly not falling below 6% until 2026. This situation is driven by factors such as rising U.S. Treasury yields influenced by inflation concerns related to changes in fiscal policies under President Trump's administration. The current market conditions have made home buying difficult, with elevated home prices and a mortgage premium historically high. Experts advise potential homebuyers to reconsider if now is the right time to purchase a home or to wait.
Stock Forecasts
XHB
Negative
With rising mortgage rates and persistent inflation concerns, the housing market remains subdued, affecting demand for mortgage-related financial products and impacting homebuilding stocks. The expected duration of high mortgage rates could lead to a further slowdown in home purchases and construction activity.
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