Thirty-year mortgage rates have hit above 7% with some experts believing it could hit 8% pretty soon. With US housing pricing and demand remaining high while supply remains low, it seems hopeless for many potential homebuyers.
Mortgage Bankers Association Chief Economist Mike Fratantoni joins Wealth! to give insight into the housing market and why home buyers should have a little hope on the horizon as he believes mortgage rates will gradually decline.
Fratantoni explains that he feels confident the Federal Reserve will cut interest rates this year, which will trickle down into the rest of the economy: "Mortgage rates, which I'll call it 7.25 [percent], in the most recent data, we think will be down to about 6.5 [percent] by the end of the year. It really is going to be reflecting a gradual slowdown in the strength of the economy and we expect the unemployment rate is going to rise not very much. We know they are calling for a recession but we do think there is going to be enough of a slowdown that the Fed should feel comfortable cutting rates by September of this year."
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