Core Viewpoint - The chief economist of the Mortgage Bankers Association predicts that the 30-year fixed mortgage rates will stabilize between 6% and 6.5% by the end of 2028, primarily due to increasing government deficits and economic pressures [1][3]. Group 1: Mortgage Rates and Predictions - The average mortgage rate has remained above 6% for the past three years, currently at 6.27% [4]. - The MBA's economic research team forecasts that mortgage rates will stay above 6% until 2028, despite potential short-term rate cuts by the Federal Reserve [8]. - Some institutions are slightly more optimistic, predicting rates may dip below 6% by the end of 2026, but experts remain skeptical [5]. Group 2: Housing Market Dynamics - Despite high interest rates, the volume of home sales is expected to slightly increase, with an estimated 5 million homes sold next year, up from 4.8 million this year, due to increased housing supply [10]. - National home prices are predicted to decline for several quarters before gradually recovering by the end of 2027 [12]. - Regional disparities in housing prices are significant, with states like Florida and Colorado experiencing price drops due to increased supply, while states like New York and Illinois see faster price increases due to limited supply [13]. Group 3: Financial Burdens on Homebuyers - The current median monthly mortgage payment is approximately $2,067, which, while slightly lower than peak levels, remains significantly higher than five years ago [14]. - Many buyers are shifting to adjustable-rate mortgages (ARMs) or FHA loans to reduce monthly payments [15]. - Rising property taxes and homeowners' insurance add to the financial strain on both prospective and current homeowners [16][17].