"Forecasting Mortgage Rate Trends Amid Inflation and Fed Policy Changes"

The Federal Reserve is expected to cut interest rates, potentially leading to lower mortgage rates by summer, but high demand and a shortage of affordable housing are likely to keep home prices high. Despite the prospect of lower rates, steep interest rates in recent years have contributed to a housing shortage, making it unlikely for prices to fall at the national level anytime soon. Additionally, high living costs in many areas further hinder homeownership, with urban areas like New York, Chicago, and Seattle facing significant affordable housing crises.