From Yahoo Finance: 2025-06-04 16:18:00

Mortgage rates are expected to remain steady in the 6.5% to 7% range, with no major decreases anticipated. However, a significant economic setback could trigger lower rates, possibly falling to 5% by the end of the year.

Realtor.com’s chief economist suggests that time could be the catalyst for lower mortgage rates, potentially bringing them down to 5.5% to 6% if the Fed’s inflation target is reached. The Federal Reserve is not expected to lower rates until September at the earliest.

A recession could lead to even lower rates, possibly below 5.5%. However, Federal Reserve rate cuts do not directly correspond to mortgage rate decreases, as seen in previous rate cuts.

Research shows that a recession could make buyers more likely to purchase a home, anticipating lower mortgage rates and home prices. Yet, job insecurity and income issues could complicate affordability during a recession.

Lower mortgage rates could bring buyers and sellers back into the market. While buyers seek lower rates, sellers may also benefit from listing their homes at reasonable interest rates, potentially creating opportunities for both parties.

Prepare for potential lower mortgage rates by having your down payment and closing costs ready. Check your credit score, set your price range, and explore prequalification to be ready to take advantage of lower rates when they arise. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping by 3% and the Dow Jones Industrial Average falling by 400 points. Analysts attribute the sell-off to concerns about rising inflation and interest rates.

2. The CDC has announced that fully vaccinated individuals can now go without masks in most indoor and outdoor settings. This decision comes as Covid-19 cases continue to decline across the country, with vaccination rates steadily increasing.

3. A new study has found that eating a Mediterranean diet can lower the risk of heart disease by up to 30%. The diet, rich in fruits, vegetables, whole grains, and healthy fats, has been shown to have numerous health benefits beyond just heart health.

4. The United Nations has warned that the humanitarian crisis in Yemen is worsening, with over 20 million people in need of humanitarian assistance. The ongoing conflict in the country has led to widespread food insecurity, malnutrition, and lack of access to essential services.

5. Tesla CEO Elon Musk has announced that the company will no longer accept Bitcoin as payment for its electric vehicles, citing concerns about the environmental impact of cryptocurrency mining. The decision has caused the price of Bitcoin to drop significantly in recent days.

Read more: When will mortgage rates go down to 5%?