Mortgage rates will stay above 6 percent through 2031 in new five-year forecast
Mortgage rates stay above 6 percent through 2031 according to a new five-year forecast.
The short version
- Michael Wolf, a global economist at Deloitte Touche Tohmatsu Ltd., outlines rising Treasury yields.
- The 30-year fixed rate hit 7.40 percent recently.
Why it matters to you. If you are planning to buy a home or refinance commercial real estate, these elevated rates mean higher monthly payments on every loan.
Mortgage rates will stay above 6 percent through 2031 according to a new five-year forecast by Yahoo Finance. Michael Wolf, a global economist at Deloitte Touche Tohmatsu Ltd., a major professional services network, outlined the firm's rising Treasury yield expectations in a September update.
The 30-year fixed Mortgage rate recently hit 7.40 percent, while the 10-year Treasury yield closed at 5.098 percent. The Federal Reserve raised interest rates at its September meeting after previously cutting them, pushing borrowing costs higher. Economists expect the Fed to hike rates once more before the end of the year before potentially cutting them again late next year as consumer spending and inflation moderate.
Meanwhile, the Congressional Budget Office projects that the 10-year Treasury yield will reach 4.4 percent by 2031. Anthropic's Claude artificial intelligence compiled consensus predictions, factoring in a spread between Treasurys and Mortgage rates that has hovered around 2.31 percentage points. In a base case scenario, home loan rates gradually normalize, but a bear case sees rates climbing as high as 8.05 percent by 2028 before falling to 7.25 percent by 2031.
