5 economists and real estate pros predict what mortgage rates may look like this summer — and share
Mortgage rates have been on an upward march in 2022: While in January, 30-year fixed mortgage rates were a little over 3%, recently, they’ve hovered over 5%. That means many buyers are wondering: Where will mortgage rates go this summer? And though no one has a crystal ball, we asked real estate experts and economists to share their predictions about where mortgage rates will land in June.
Zillow economist Nicole Bachaud says: “Rates are above 5% and are likely to stay around that level for the rest of the year.” Realtor.com chief economist Danielle Hale says she expects mortgage rates to hover around the 5.25% to 5.5% range, and Kate Wood, home expert at Nerdwallet, says it seems like mortgage rates should hold steady in June. But, of course, these predictions depend on a number of things.
Greg McBride, chief financial analyst at Bankrate, says there is risk in rates rising: “Until we see sustained evidence that inflation has peaked — and we haven’t – the risk for mortgage rates remains to the upside. If inflation doesn’t get better, but doesn’t get worse, mortgage rates will be in a holding pattern.”
And as Hale puts it: “At this stage of the economic cycle, the incoming data will drive rate fluctuations and good news will be bad for interest rates in general and mortgage rates specifically. By that, I mean that stronger economic data will suggest that the Fed may need to take a firmer stance against inflation and push mortgage rates higher.” Market Watch