Core Viewpoint - The possibility of continued high mortgage rates is a significant concern for homeowners and potential buyers, as indicated by former Treasury Secretary Larry Summers, who suggests that long-term rates are more likely to rise due to fiscal pressures on the economy [1] Mortgage Rate Trends - As of mid-October, the average 30-year fixed mortgage rate was 6.19%, a decrease from 6.44% at the same time last year [3] - Mortgage rates have remained elevated since 2022, with the average 30-year fixed-rate mortgage increasing from 3.45% in January 2022 to 6.42% by December 2022, and rates have not dipped below 6% since then [3] Economic Impact - High mortgage rates have contributed to an affordability crisis in the housing market, leading to slow new home sales in 2025, with Fannie Mae projecting total home sales in 2025 to be lower than in 2024 [5] - The Federal Reserve's interest rate hikes in response to inflation in 2022 have influenced mortgage rates, which are indirectly affected by the interest rates set by the Fed [4] Future Projections - Predictions for mortgage rates in 2025 and 2026 are more optimistic than Summers' outlook, with Fannie Mae forecasting a decline to 5.9% by the end of 2026, although Freddie Mac anticipates a potential increase to 6.4% by December 2025 [6]