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MNI INTERVIEW: Home Sales To Rise Gradually As Fed Eases-MBA

(MNI) WASHINGTON

MBA chief economist sees annual home price growth averaging around 3-4% in the next couple of years.

A U.S. mortgage market battered by high Federal Reserve interest rates will get some relief over the next couple of years as the central bank gradually reduces borrowing costs, reviving sales activity, Mortgage Bankers’ Association chief economist Michael Fratantoni told MNI.

The Fed is likely to cut rates three times this year, which would probably leave the 10-year note a little bit below 4% and the 30-year mortgage rate, currently around 6.8%, close to 6% by the end of 2024.

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A U.S. mortgage market battered by high Federal Reserve interest rates will get some relief over the next couple of years as the central bank gradually reduces borrowing costs, reviving sales activity, Mortgage Bankers’ Association chief economist Michael Fratantoni told MNI.

The Fed is likely to cut rates three times this year, which would probably leave the 10-year note a little bit below 4% and the 30-year mortgage rate, currently around 6.8%, close to 6% by the end of 2024.

Keep reading...Show less