Real Estate Expert Predicts Lifelong Rise in Mortgage Rates

Lawrence Yun, chief economist at the National Association of Realtors, predicts that mortgage rates will not return to the 3% range in his lifetime. The historically low rates experienced during the pandemic were an anomaly, driven by economic uncertainty and the Federal Reserve's response to stimulate growth. With inflation and rising federal spending deficits, Yun believes the Fed is unlikely to lower interest rates to near-zero again, even in the event of another financial crisis or pandemic. Other economists also agree that homebuyers should not expect a return to record-low mortgage rates. Current projections suggest a steady decline in rates over the next year, with average rates forecasted to be around 6% by the end of 2023.