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Reply to "Where will mortgage rates go in the next 1-2 years?"
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[quote=Anonymous][quote=Anonymous]There's good economic theory to support the idea that equilibrium long-term interest rates are trending lower over time. The reasons include an aging global population and more efficient financial markets. So there's good reason to believe that the 3-4% rates of the 2010s are pretty sustainable once we've worked our way through the various COVID supply and preference shocks, even if they might not have been sustainable in the 80s or 90s. Will we get there in the next year or two though? Who knows.[/quote] Covid supply shocks were an excuse. Fed needed inflation to raise rates so treasury can pay down debt.[/quote]
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