What's Next for Mortgage Interest Rates?

The rise in interest rates has definitely had an impact on housing sales across the country. What can we expect in the near future?

Let's ask the experts. Goldman Sachs sees the Fed holding steady after last month’s quarter-point hike until the 2nd quarter of 2024, when they predict the cycle will start to reverse with the first quarter-point cut. Goldman has had a pretty good record in predicting the economic outlook so far. When the market was predicting a lower peak for Fed rates, Goldman disagreed, saying they would go higher. When the Fed was arguing that a recession was more likely than not, Goldman begged to differ, saying it was possible but not the base case.

As of the July 25 rate decision, the Fed is no longer predicting a recession. It turns out the soft landing may not be a fairy tale after all. The chatter is shifting from how high rates need to go to how long they will stay where they are before they come down. That's encouraging news for both home buyers and sellers.