How much will interest rates fall in 2024 & 2025?

The rate is then predicted to fall back to 3.75% in 2024 and 3.25% in 2025, according to our econometric models. In their interest rates predictions as of 12 May, ING saw rates at 5.25% in the second and third quarters of 2023 (a forecast that has been materialised), and falling to 4.25% in the final quarter of the year.

What will the 30-year mortgage rate be in 2025?

We expect the 30-year mortgage rate to fall to 4.5% in 2025 from an average of 6.5% in 2023. 2) Inflation forecast. We project price pressures to swing from inflationary to deflationary in 2023 and following years, owing greatly to the unwinding of price spikes caused by supply constraints in durables, energy, and other areas.

How many times did the Fed increase interest rates in 2022?

The Fed increased rates seven times in 2022, and so far three times in 2023, bringing the rate to between 5% and 5.25%, the highest level in 16 years. The Fed is now at the whim of greater market forces as it tries to steady the economic ship.

What is a long-term interest rate forecast?

Analysts typically focus on the near term. Long-term interest rate forecasts stretch into next year and over the next 10 Federal Open Market Committee (FOMC) meetings. They provide insight into interest rate forecasts over 5 years.