How experts see mortgage rates moving as treasury yields decline slowly
Posted on: Oct 21, 2025 16:31 IST | Posted by: Hindustantimes
US mortgage rates depend upon various factors, the to the highest degree important is the 10-year Treasury yield. It is mainly on the basis of this parameter that the mortgage rate for the next few years can be determined.
Yahoo Finance reported that the Deloitte Global Economics Research Center has issued an updated forecast for the US economy, which includes projections for the 10-year Treasury yield. The site quoted Michael Wolf, a global economist, writing about these projections.
“We expect the 10-year Treasury yield to hover near 4.5% for the remainder of this year, despite a softening in economic data and a 50-basis-point cut from the Fed in the fourth quarter of 2025," Wolf explained. "The 10-year Treasury yield begins to decline slowly in 2026, falling to 4.1% by 2027 and remaining there through the end of 2029.”
Goldman Sachs agrees with this forecast. However, the Congressional Budget Office predicts a lower number. They estimate the yield to be 4.1% this year and fall to 4% in 2026, going down further to 3.9% through to 2029, Yahoo reports.
Going by these numbers, Yahoo Finance estimates the mortgage rates for the next five years to be 6.6-6.8% in 2025, 6.6-6.4% in 2026, 6.2-6.4% in 2027, 6.2-6.4% in 2028 and 6.2-6.4% in 2029. However, the website adds that there is always a likelihood that sudden events, such as a pandemic or economic shocks, can alter the calculations completely.
Also read: Chargers vs Colts Week 7 injury report: Who's in and who's out ahead of SoFi Stadium showdown?
According to Forbes, the mortgage rates were above 7% in January this year. They came down to under seven percent over the next few months.
The article quotes Fannie Mae’s September Economic and Housing Outlook as saying, “We forecast mortgage rates to end 2025 and 2026 at 6.4% and 5.9%, respectively, compared to 6.5% and 6.1% in our prior forecast.”
The National Association of Home Builders, on the other hand, predicts the 30-year mortgage rate to continue trending downwards, reaching 6.25% at the end of 2026 and 6% at the end of 2027.
The Mortgage Bankers Association’s prediction for this year’s end is 6.5%. So, it seems to be a consensus that the 30-year mortgage rate will be around the 6.5% mark in the near future.
As per Bank Rate, the rate on October 19 is 6.28 percent.
There is a direct relation between the two markers. As more investors purchase the treasury bond, the more it drives down the yield and the mortgage rate.
Yahoo Finance forecasts the mortgage rate for next year to be 6.6-6.4% by the end of the year.
Global News Perspectives
In today's interconnected world, staying informed about global events is more important than ever. ZisNews provides news coverage from multiple countries, allowing you to compare how different regions report on the same stories. This unique approach helps you gain a broader and more balanced understanding of international affairs. Whether it's politics, business, technology, or cultural trends, ZisNews ensures that you get a well-rounded perspective rather than a one-sided view. Expand your knowledge and see how global narratives unfold from different angles.
Customizable News Feed
At ZisNews, we understand that not every news story interests everyone. That's why we offer a customizable news feed, allowing you to control what you see. By adding keywords, you can filter out unwanted news, blocking articles that contain specific words in their titles or descriptions. This feature enables you to create a personalized experience where you only receive content that aligns with your interests. Register today to take full advantage of this functionality and enjoy a distraction-free news feed.
Like or Comment on News
Stay engaged with the news by interacting with stories that matter to you. Like or dislike articles based on your opinion, and share your thoughts in the comments section. Join discussions, see what others are saying, and be a part of an informed community that values meaningful conversations.
Download the Android App
For a seamless news experience, download the ZisNews Android app. Get instant notifications based on your selected categories and stay updated on breaking news. The app also allows you to block unwanted news, ensuring that you only receive content that aligns with your preferences. Stay connected anytime, anywhere.
Diverse News Categories
With ZisNews, you can explore a wide range of topics, ensuring that you never miss important developments. From Technology and Science to Sports, Politics, and Entertainment, we bring you the latest updates from the world's most trusted sources. Whether you are interested in groundbreaking scientific discoveries, tech innovations, or major sports events, our platform keeps you updated in real-time. Our carefully curated news selection helps you stay ahead, providing accurate and relevant stories tailored to diverse interests.
No comments yet.