As of March 2025, speculation surrounds potential declines in mortgage rates, with recent economic weakness driving this trend. Treasury Secretary Scott Bessent indicates that the housing market is currently frozen but is expected to unfreeze soon. Predictions suggest mortgage rates could fall between 5.75% and 7.25%. Challenges remain in achieving lower yields without further economic downturns. Additionally, the Trump administration's efforts to reduce government spending may significantly shape the future of the housing market and mortgage rates.
Economic weakness has been the primary driver behind declining mortgage rates, but a tricky path lies ahead if we want to see further decreases.
The housing market is currently stagnant, yet Treasury Secretary Scott Bessent believes it will unfreeze in the coming weeks as economic conditions evolve.
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