Morgan Stanley predicts major mortgage rate changes are coming soon

Economic developments may impact the housing market in an unexpected way over the next two years.

May 2, 2025 - 02:30
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Morgan Stanley predicts major mortgage rate changes are coming soon

When mortgage charges surged in 2022, doubling from 3.5% to almost 7%, it marked an give up to the Covid-generation housing boost. Stubborn mortgage charges have kept the market at a standstill, making purchasing a home more costly for investors and discouraging sellers from list their houses.

Although mortgage charges were within the beginning projected to descend particularly in 2025, sticky inflation and financial uncertainty have kept them above 6.5%, despite three consecutive pastime fee cuts on the give up of 2024.

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