Reply to When will rates come down again?

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Reply to "When will rates come down again?"

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[quote=Anonymous]For the past 10-15 years, homebuyers enjoyed remarkably low interest rates, driven by the Federal Reserve's efforts to stimulate the economy after the 2008 financial crisis and the 2020 pandemic. The Fed cut interest rates, bought large quantities of government bonds (quantitative easing), and low inflation gave them room to maneuver. All of this made borrowing cheaper and encouraged spending, including on homes.

However, the economic landscape has changed, and interest rates have recently risen to combat inflation. Looking ahead 5-10 years, expect a shift. For example, the 30-year fixed mortgage rate is expected to hover around 6.7% in 2025 and may dip to roughly 4.7% by late 2027 before climbing back towards 6% by 2029. However, the days of sub-3% rates are likely over. Rates are expected to settle at levels higher than the pandemic-era lows, possibly in the range of 5-6% for 30-year fixed mortgages in the long run. Several factors will influence the exact path of rates, including inflation, economic growth, global events, and government policies - especially as Trump continues his TACO approach to tariffs and the economy. [/quote]

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