The prospect of sharply cheaper home loans in the US appears increasingly unlikely. Fresh economic forecasts suggest mortgage rates could remain near current levels for much of the decade. Mortgage borrowing costs rose sharply after the pandemic era's lows. The average 30-year fixed mortgage rate dropped close to 3% in 2021. It now sits around 6%.
Analysis by Hal Bundrick, CFP, a senior writer covering housing finance, indicates that rates are unlikely to fall dramatically over the next five years. The projection is based on expected movements in government bond yields and historical lending spreads. For many buyers, that means the cost of financing a home may remain significantly higher than during the ultra-low rate period of the early pandemic years.
