With mortgage rates firmly situated above 7%, the cost of homeownership has notably escalated. The question lingers: Could rates ascend even further?

According to insights shared with MarketWatch by three specialists, should the economy continue to exhibit indications of vigor and the U.S. Federal Reserve execute another increase in its benchmark interest rate, the rates might surge to 8%.

The impact of elevated rates has already made its mark on the U.S. housing market, MarketWatch has reported.

Even those in the business of constructing homes, who recently enjoyed robust demand from prospective buyers, are observing a decline in buyer footfall as these escalating rates unsettle their clientele.

Nevertheless, the experts also underscored the emerging signs of a cooling U.S. economy and a gradual easing of inflation rates.

This could potentially usher in a deceleration—or conceivably a dip—in mortgage rates.

However, it is crucial to acknowledge that such forecasts do not come with an assurance, as the stronger-than-anticipated U.S. retail sales figures from Tuesday indicated.

Written by staff