Posted 10/4/2023, 1:23:51 PM
Goldman Sachs Forecasts Mortgage Rates to Surge to 7.1% By End of 2023 as Fed Battles Inflation
- Goldman Sachs revises mortgage rate forecast higher due to Fed actions
- Now expects rates to hit 7.1% by end of 2023, up from prior 6.5% forecast
- Cites higher, longer interest rates as Fed worries about inflation
- Mortgage rates tied to 10-year Treasury yield, which has been surging
- Goldman also forecasts lower mortgage origination volumes in 2023-2024
- Mortgage applications and purchases already at multi-decade lows due to higher rates
- Rapid rate rise has pushed many potential homebuyers out of the market