Oct. 16 at 8:04 AM
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'Why Mortgage Rates Might Not Keep Falling'
"The Fed is cutting interest rates, but analysts expect mortgage rates to remain relatively steady at around 6% in 2026.
Mortgage rates closely track longer-term bond yields, which are being kept elevated by inflation concerns.
Mortgage rates have fallen after peaking above 7% at the beginning of the year, but prospective homebuyers shouldn’t hold their breath for a return to the ultra-low rates seen in the immediate aftermath of the pandemic. The average rate on a new 30-year fixed-rate mortgage is now 6.3%, according to data from Freddie Mac. That’s the lowest level in about a year, but it’s well above the sub-3% lows of 2021.
Yet even as short-term rates fall, analysts say mortgage rates—which are more closely tied to long-term bond yields—are likely to remain generally near current levels for the foreseeable future.
“We don’t expect any big changes,” says Nadia Evangelou""
