Read HSH’s Latest Two-Month Forecast for Mortgage Ratesby Tim Manni
HSH’s latest two-month forecast for mortgage rates is in. While rates trended higher than we thought they would during the last forecast period, “Our expected range of movement was pretty good, but rather than moving to the lower end of the scale, we moved to the upper side instead.”
The closing of summer and beginning of fall usually sees a change for rates, from one of a dull pattern to one with more snap to it. For the most part, that has often meant a modest overall decline in mortgage rates, as perhaps the waning optimism of summer has become the colder reality of autumn. Even if firmer of late, rates remain well below last year’s level at the start of this forecast period.
Economic activity should continue to nudge higher over the next nine weeks. We expect that as moderately better numbers are revealed, discussions of when the Federal Reserve will raise interest rates will begin to surface. They won’t feel compelled to do so anytime soon, probably not until very late this year or early next at the very earliest. Even when they do, short-term rates will still remain well below normal for a long while.
To continue reading our two-month forecast for mortgage rates, click here.