America’s prospective homebuyers absorb harsh reality: Mortgage rates probably aren’t coming down for a while
Many Americans have been
holding back from jumping into the housing market
in the hopes that mortgage rates will decline. So far, they haven’t.
The average 30-year mortgage rate has been above 6% for two years — and is likely to stay above that level for the foreseeable future, experts say.
A combination of better-than-expected growth and uncertainty about the impact of President-elect Donald Trump’s economic proposals, especially on inflation and the deficit, are combining to keep rates elevated. That’s despite the Federal Reserve’s push to lower its key federal funds rate to make borrowing in the economy easier.
“Sixes are the new normal,” said Lisa Sturtevant, chief economist at Bright MLS, a mortgage listing services group, referring to 6% mortgage rates.
Interest ra...