Mortgage rates will remain above 6% throughout 2025, Goldman Sachs said.
In the bank's 2025 Housing Outlook, the analysts forecast mortgage rates will remain elevated, even as the Federal Reserve cuts interest rates.
They expect mortgage rates to stay above 6% next year and end 2025 at 6.1%.
"Our strategists expect mortgage rates to remain elevated for the foreseeable future," the analysts, led by Jan Hatzius, said in a Monday note.
AdvertisementThey pointed to a variety of technical factors, including lower rates volatility and a rebound in demand for mortgage-backed securities that will help close the gap between risk-free rates and mortgage rates.
Persons:
Goldman Sachs, —, Freddie Mac, Jan Hatzius
Organizations:
Analysts, Service, Federal Reserve, Treasury