Mortgage rates will stay above 6% through 2025, Goldman Sachs has said


Mortgage rates will stay above 6% through 2025, Goldman Sachs has said.

Goldman Sachs has adjusted its forecast, anticipating a decrease in 30-year mortgage rates to 6.3% by the close of 2024 and a further dip to 6% in 2025 as the Federal Reserve initiates interest rate reductions. This revision contrasts with Goldman's previous projections of 7.1% and 6.6% for the respective periods. Analyst Roger Ashworth explained that the modification is based on expectations of the Fed implementing five cuts in 2024 amid a robust economic growth scenario and a narrowing gap between mortgage rates and Treasury yields.

AD_SHOULD_BE_HERE

As of last week, the average 30-year mortgage rate, according to Freddie Mac, was 6.62%, demonstrating a significant drop from its peak of 7.79% in October. While a continued decline in mortgage rates is expected to modestly enhance housing affordability, Goldman acknowledges that it won't entirely offset the substantial rate increase observed from 2022 to 2023.

The lower mortgage rates are predicted to contribute to stability in the mortgage-backed securities market, leading to an estimated $2 trillion in mortgage originations for 2025, compared to $1.5 trillion in 2023. Goldman anticipates much of this growth to be driven by heightened refinance activity, as homeowners from the past year seek to secure lower mortgage rates.

AD_SHOULD_BE_HERE
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.