Economists predict rates below 6% will restore affordability and boost home sales

  • Most economists expect the 30-year mortgage rate to dip below 6% in 2025
  • A drop in rates below 6% would significantly impact the housing market
  • Fannie Mae is the most optimistic, expecting rates to fall below 6% by the end of 2024
  • Redfin and Moody’s Analytics predict rates to fall below 6% by 2025
  • The Mortgage Bankers Association and Nationwide expect rates to fall below 6% in the first and second quarter of 2025, respectively

Most economists expect the rate on the 30-year mortgage to dip below 6% in 2025, which is seen as a key threshold for the housing market. Fannie Mae is the most optimistic, expecting rates to fall below 6% by the end of 2024. Redfin, Moody’s Analytics, the Mortgage Bankers Association, and Nationwide all predict rates to fall below 6% by 2025. A drop in rates below 6% is expected to significantly impact the housing market, restoring affordability and boosting home sales.

Public Companies: Fannie Mae (N/A), Moody’s (MCO)
Private Companies: undefined, undefined, undefined, undefined
Key People: Ken Shinoda (DoubleLine portfolio manager), Mark Zandi (Chief Economist at Moody’s Analytics), Daryl Fairweather (Chief Economist at Redfin), Kathy Bostjancic (Chief Economist at Nationwide Mutual Insurance Company)

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Factuality Level: 7
Justification: The article provides information from various economists and experts on their predictions for when the rate on the 30-year mortgage will fall below 6%. The information is based on their opinions and analysis of market trends. While the article does not provide any misleading or inaccurate information, it is important to note that these predictions are speculative and may not necessarily reflect the actual future rates.

Noise Level: 3
Justification: The article provides information on economists’ predictions for when the rate on the 30-year mortgage will fall below 6%. It includes quotes from various economists and housing-finance experts. However, the article contains some repetitive information and does not provide much analysis or evidence to support the predictions.

Financial Relevance: Yes
Financial Markets Impacted: Mortgage industry, housing market

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the potential impact of falling mortgage rates on the housing market and homeowners. It provides insights from economists on when they expect the rate on the 30-year mortgage to fall below 6%. While there is no extreme event mentioned, the information is relevant to the financial industry and housing market.

Reported publicly: www.marketwatch.com