With mortgage rates firmly above 7%, home ownership has become very expensive. But will rates be even higher?
Three experts told MarketWatch that if the economy continues to show signs of strength and the US Federal Reserve raises its benchmark interest rate again, rates could rise to 8%.
High rates have already affected the US real estate market. Even homebuilders, who have seen strong demand from homebuyers in recent months, are reporting a drop in buyer traffic as these rising rates shake their customers.
But experts also stressed that the US economy is showing early signs of cooling and that the inflation rate is slowing. This could lead to a slowdown, or even a fall, in mortgage rates. But those forecasts are no guarantee, as Tuesday’s stronger-than-expected U.S. retail sales figures suggest.