"Jeff DerGurahian, chief investment officer and head economist at loanDepot, said he doesn't expect meaningful movement for mortgage rates without clearer signals from upcoming employment and inflation reports. Markets are currently pricing in a near 90% chance of a 25-basis-point cut in one of the first three Fed meetings of 2026, with consensus calling for two cuts next year and a one-in-three chance of three, DerGurahian said."
"Affordability could improve by midyear if inflation continues to cool, paving the way for 30-year fixed rates to move into the 5.5% range. Even with speculation around a recession, housing should remain a strong component of the economy thanks to record levels of home equity, which are the highest since the early 1960s. Sam Williamson, senior economist for First American, also said the pending home sales report offered some positive momentum for the housing market heading into 2026."
Mortgage rates are expected to stay within a relatively narrow band in early 2026, though overall declines are forecast for next year with an uneven path. Cooling home prices and higher inventory are more likely to draw consumers into the market than further near-term rate drops. Local market conditions — inventory by price point, pace of activity, and frequency of below-asking sales — will be crucial for prospective buyers. Markets price a high probability of early Fed cuts in 2026, which could bring 30-year fixed rates toward 5.5% and improve affordability by midyear. Record home equity supports housing resilience despite recession concerns.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]