Yahoo Finance: May Mortgage Predictions: Prepare for Rates to Stay Above 6.5%

The housing market has remained relatively unchanged this year. According to Bankrate data, the average rate for a 30-year fixed mortgage is around 6.9%. Rates are expected to remain in the current range, between 6.5% and 7%, for a while.

Yahoo Finance

16 hours ago

May Mortgage Predictions: Prepare for Rates to Stay Above 6.5%

Since late January, the mortgage market has followed a somewhat parallel path to the White House's erratic policies, shifting between volatility and recovery and then back to volatility.

In short, today's economic instability has a significant impact on the housing market.

"Uncertainty tied to higher inflation has kept mortgage rates high, which has led to lower affordability of monthly mortgage payments, keeping some potential buyers out of the market," said Molly Boesel, principal economist at Cotality.

If housing inventory increases, inflation slows and mortgage rates move down, would-be buyers could start to move off the sidelines. But financial experts caution that rising prices could throw a wrench in the Federal Reserve's expected path for interest rate cuts, forcing homebuyers to adjust to expensive borrowing rates — as well as steep home prices — over the long term.

Here's why that matters. . .