Mortgage Rates to Remain High Through 2024 Before Potential Decline, Economists Predict

Mortgage rates hitting 8% this month has economists, homeowners, and prospective borrowers wondering when rates will fall.

Capital Economics predicts mortgage rates won't fall below 6% before end of 2025 due to higher forecasts for Treasury yields.

By end of 2023, forecast is 7.5% mortgage rate (previously 6.75%) and 6.25% by end of 2024 (previously 5.25%).

Capital Economics predicts rates will fall faster than Treasury yields in 2024.

Other experts agree sustained higher rates are likely for next couple years, though not as low as 2-3% pandemic rates.