A recent poll suggested that 71% of potential first-time homebuyers are waiting for interest rates to drop before entering the market. “You have an entire generation of homebuyers that can’t imagine rates above 6%.”
This sentiment is echoed in a survey by Realtor.com, where many existing homeowners indicated they would only consider buying a new home if rates fell below 5%.
So will we ever see 4% mortgage rates again?
Economists suggest that the coveted 4% mortgage rate is unlikely to return soon. Some project that rates might ease to 6.5% by the end of the year. Historically, the low rates of the past decade were exceptions, driven by economic crises like the Great Recession and, more recently, the global pandemic.
Many experts believe rates will not drop drastically for quite some time. Some suggest it could take a decade before rates fall that low again. The typical first-time homebuyer today, often a millennial, has never encountered such high rates in their adult life.
