Mortgage rates below 6%? Not anytime soon.

Published On Nov 2, 2024, 8:00 AM

Mortgage rates are unlikely to drop below 6% soon, with current rates hovering above 7%. The increase in rates is due to rising Treasury yields influenced by economic optimism and pre-election uncertainties. Economists suggest that while rates may fluctuate, they will likely remain between 5.75% and 6.5% for the time being. This situation has created a tough environment for homebuyers and could lead to continued low sales in the housing market.

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The mortgage market is experiencing instability due to external economic factors, including rising Treasury yields which are closely following the Fed's decisions and overall economic indicators. This trend suggests that the interest costs associated with housing are likely to remain elevated, impacting potential homebuyers.

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