I get this question quite often from people who are dipping their toe into the home buying pool.
I always start with this comment:
My crystal ball broke last week so I am going to need to give you my best guess.
Part one: Will interest rates come down (or go up for that matter)?
I THINK the answer is yes, but only a bit. If they can go under 6% it will cause a boom in my area. The THINK part of this comes from the potential for inflation. Many countries have tried to play hardball on tariffs, but (because we are the buyer) it is a losing game for countries like Japan, China, Germany, etc… I believe the tariff situation will resolve itself by September.
Part two: Will the FED cut interest rates:
The FED will likely cut rates which will (hopefully) ease pressure on the ten year treasuries. If inflation does not ease, these rates will go up along with mortgage rates. The FED has not followed normal practice the last two cycles (tariff concerns they claim) so this is very unpredictable.
Boy, I wish that crystal ball did not break because I have no idea what will happen without it!