If you’re a baby boomer, you might not consider today’s mortgage rates to be high. After all, in the 1980s and ’90s, they were much higher. But if you’re of a younger generation and experienced historically low mortgage rates throughout the pandemic, and years before, you probably feel otherwise. Well, a new normal is setting in, and it may sound fine or horrendous depending on who you are.
“I think the new normal for mortgage rates will be around 6%,” the National Association of Realtors’ chief economist, Lawrence Yun, said in an interview with CNBC yesterday. “The Fed clearly has indicated that they will be cutting interest rates; even with delays, certainly whatever they don’t do this year, will get pushed into next year, but the mortgage rate will not go down to 3%, 4%, or even 5%...so consumers should anticipate that 6% should be normal.”
