Are We going to See 8% Mortgage Rates

[Normal]

The treasury climbed today to over 5%. Will debt, foreign bond rates, compression and earnings force the lending rate in the US up higher than the 7% we now enjoy? How will the FED respond?

[Kenswing]

The treasury climbed today to over 5%. Will debt, foreign bond rates, compression and earnings force the lending rate in the US up higher than the 7% we now enjoy? How will the FED respond?

I love the higher interest rates. Gives me extra spending money.

My first mortgage was an 11% VA loan. That was considered a great rate at the time.

[Jayhawk]

The average 30-year fixed-rate mortgage in the United States has been 6.81% as of May 16, 2025, according to Trading Economics. Since 1971, the average has been 7.71%, with rates fluctuating significantly over time.

[Normal]

The average 30-year fixed-rate mortgage in the United States has been 6.81% as of May 16, 2025, according to Trading Economics. Since 1971, the average has been 7.71%, with rates fluctuating significantly over time.

If we hit that norm, we should see interest rates around 10%. That would be great for CDs and bonds. There is always a positive side. Cash on the sidelines may be the way to go.

[jimmyinvillages]

I would recommend people who are blessed to have purchased homes decades ago with higher interest rates but MUCH lower cost of housing and more importantly income - housing cost ratio not do a tired take of 'back in my day rates were 15-18%!

With today's entry level cost of housing + interest rates + dollar depreciation + wages that haven't kept up with housing/education inflation, today's young people are understandably stressed.

[shaw8700@outlook.com]

Maybe others will!

[Zenmama18]

I love the higher interest rates. Gives me extra spending money.

My first mortgage was an 11% VA loan. That was considered a great rate at the time.

Our first was 12 3/8% and we felt lucky to get that!

[oneclickplus]

The treasury climbed today to over 5%. Will debt, foreign bond rates, compression and earnings force the lending rate in the US up higher than the 7% we now enjoy? How will the FED respond?

Higher interest rates are good for us savers.

Proverbs 22:7 - ... the borrower is slave to the lender

Don't be a slave.

[oneclickplus]

I would recommend people who are blessed to have purchased homes decades ago with higher interest rates but MUCH lower cost of housing and more importantly income - housing cost ratio not do a tired take of 'back in my day rates were 15-18%!

With today's entry level cost of housing + interest rates + dollar depreciation + wages that haven't kept up with housing/education inflation, today's young people are understandably stressed.

Today's high housing costs are precisely because people can borrow money. Without mortgages (or at least without significant down payments), prices escalate. This is because it becomes not "how much can you afford" but rather "how much can you afford to borrow".

[Ptmcbriz]

Since it will hurt the economy, I hope not. There are far more negatives to it, than the positives of higher bond rates. Hoping for high interest rates because of the bond market is flat out selfish in my opinion. We all know the negative impact of high interest rates that ripple through our society and it won’t be pretty. However, I’m not seeing anything planned or happening that is going to turn it around. The administration seems to be roaring down the train tracks full speed ahead, knowing the tracks go over a cliff. Yet, there is no change in direction.

I heard a recent plumbing company who sells a custom part manufactured in China recently ask at a conference that if they brought their manufacturing back to the US and built a plant and manufactured the part here it would be $285, vs their competitors that keep manufacturing theirs in China that cost $153, which will they buy? Of course, the majority said the $153 one. That is what we are up against. Manufacturing will never come back to the US unless it’s something highly specialized high tech. Until that’s realized we are in a forced unnecessary economic decline that never needed to happen.

[Cuervo]

The ideal is not to have a mortgage, but if that is something that is needed you have to do your homework.
My daughter has a very low mortgage rate, she always kept her eye on the rates and when the rates were dropping, she refinanced, she did this twice that I know of and has a fixed mortgage.
Some people go into these things with blinders, looking for the best deals at the time which are flexibles, without considering that the rates they have agreed to can increase.
There is an informative movie titled "The Big Short" I think everyone should watch, it somewhat touches on flexible mortgage rates.

[Pballer]

In a year J Powell will be gone, to be replaced by an easy money political hack, and irresponsible low interest monetary policy will resume.

[rsmurano]

Powell is out of touch. He was late raising rates during the 2022 recession and now he’s late lowering them while inflation is way down.

Housing prices go up and down because of supply and demand. Every new house that is built here in TV goes thru a lottery system with dozens/hundreds of people going for the same house. I have multiple friends that have lost out up to 7 different lotteries for a new Eastport lot/house.

There are many many people buying homes with cash. Actually I don’t know of any friends that have a mortgage. Cash is king so high interest rates helps people with cash. IMO again, retires should never take out a mortgage or a car loan, you should use cash, except if you can get a 2-3% mortgage or a 1% car loan while using your money in the stock market where it’s making good money.Right now, even with rising rates, I have new stocks I invested in 6 weeks ago making up to 80% gains, which will cover and 1% gain in interest rates if I had any loans.

How many USA companies are popular with people that build top notch products? John Deere, Harley Davidson, ps audio, and there are many others. The reason GM, Ford, and especially Stellantis aren’t selling is because they are terrible compared to just about any other auto manufacturer IMO of course.
I’ll never buy a gm, ford or Chrysler product, while I buy new imports every 2 years.

[jasamy2]

Interesting. Do you care to share what stocks you bought 6 weeks ago that are returning at an 80% rate?

Powell is out of touch. He was late raising rates during the 2022 recession and now he’s late lowering them while inflation is way down.

Housing prices go up and down because of supply and demand. Every new house that is built here in TV goes thru a lottery system with dozens/hundreds of people going for the same house. I have multiple friends that have lost out up to 7 different lotteries for a new Eastport lot/house.

There are many many people buying homes with cash. Actually I don’t know of any friends that have a mortgage. Cash is king so high interest rates helps people with cash. IMO again, retires should never take out a mortgage or a car loan, you should use cash, except if you can get a 2-3% mortgage or a 1% car loan while using your money in the stock market where it’s making good money.Right now, even with rising rates, I have new stocks I invested in 6 weeks ago making up to 80% gains, which will cover and 1% gain in interest rates if I had any loans.

How many USA companies are popular with people that build top notch products? John Deere, Harley Davidson, ps audio, and there are many others. The reason GM, Ford, and especially Stellantis aren’t selling is because they are terrible compared to just about any other auto manufacturer IMO of course.
I’ll never buy a gm, ford or Chrysler product, while I buy new imports every 2 years.

[Aces4]

Since it will hurt the economy, I hope not. There are far more negatives to it, than the positives of higher bond rates. Hoping for high interest rates because of the bond market is flat out selfish in my opinion. We all know the negative impact of high interest rates that ripple through our society and it won’t be pretty. However, I’m not seeing anything planned or happening that is going to turn it around. The administration seems to be roaring down the train tracks full speed ahead, knowing the tracks go over a cliff. Yet, there is no change in direction.

I heard a recent plumbing company who sells a custom part manufactured in China recently ask at a conference that if they brought their manufacturing back to the US and built a plant and manufactured the part here it would be $285, vs their competitors that keep manufacturing theirs in China that cost $153, which will they buy? Of course, the majority said the $153 one. That is what we are up against. Manufacturing will never come back to the US unless it’s something highly specialized high tech. Until that’s realized we are in a forced unnecessary economic decline that never needed to happen.

Yeah, ain't it nice for the plumber's bottom line! But what Americans don't understand is while 're they paying a little less for their plumbing, they are shelling out huge money in health care, food stamps, housing subsides, etc. because many people aren't making a decent wage in America. You'll pay the piper one way or the other and either be propping up this country or the other one.

[Aces4]

Powell is out of touch. He was late raising rates during the 2022 recession and now he’s late lowering them while inflation is way down.

Housing prices go up and down because of supply and demand. Every new house that is built here in TV goes thru a lottery system with dozens/hundreds of people going for the same house. I have multiple friends that have lost out up to 7 different lotteries for a new Eastport lot/house.

There are many many people buying homes with cash. Actually I don’t know of any friends that have a mortgage. Cash is king so high interest rates helps people with cash. IMO again, retires should never take out a mortgage or a car loan, you should use cash, except if you can get a 2-3% mortgage or a 1% car loan while using your money in the stock market where it’s making good money.Right now, even with rising rates, I have new stocks I invested in 6 weeks ago making up to 80% gains, which will cover and 1% gain in interest rates if I had any loans.

How many USA companies are popular with people that build top notch products? John Deere, Harley Davidson, ps audio, and there are many others. The reason GM, Ford, and especially Stellantis aren’t selling is because they are terrible compared to just about any other auto manufacturer IMO of course.
I’ll never buy a gm, ford or Chrysler product, while I buy new imports every 2 years.

Those wonderful American companies that you tout have moved much of their manufacturing to Mexico.

Why should financial institutions be liable for propping up the economy or the stock market when it sinks? If you want to use other people's money for your gain, pay the piper and don't expect free money at rates below 5%. Why the devil should that onus be leveled on those who invest in savings?

[dougawhite]

My first mortgage in '78 was 12.5%. Of course, the house price was only $47,000 for 8 rooms, a 2-story barn, on a double lot in downtown Concord, NH. I learned a lot of DIY skills over the 8 years I owned it! Sold it for $88K...

[BillyGrown]

Powell is out of touch. He was late raising rates during the 2022 recession and now he’s late lowering them while inflation is way down.

Housing prices go up and down because of supply and demand. Every new house that is built here in TV goes thru a lottery system with dozens/hundreds of people going for the same house. I have multiple friends that have lost out up to 7 different lotteries for a new Eastport lot/house.

There are many many people buying homes with cash. Actually I don’t know of any friends that have a mortgage.



Demand is way down right now on any preowned home here in the villages. More go on the market than go pending and inventory is at the highest levels ever seen. Almost 60% of the homes sold are reduced from the original asking price and little over 40% are paid for in cash.

[vintageogauge]

If rates go down prices will go up so you might as well buy while the prices are low and re-finance if they ever come down.

[Tavernierlady]

Higher rates will deter people from overspending, as to refinance to take the equity out of their homes will be very costly.

[jimhoward]

Powell is out of touch. He was late raising rates during the 2022 recession and now he’s late lowering them while inflation is way down.

Housing prices go up and down because of supply and demand. Every new house that is built here in TV goes thru a lottery system with dozens/hundreds of people going for the same house. I have multiple friends that have lost out up to 7 different lotteries for a new Eastport lot/house.

There are many many people buying homes with cash. Actually I don’t know of any friends that have a mortgage. Cash is king so high interest rates helps people with cash. IMO again, retires should never take out a mortgage or a car loan, you should use cash, except if you can get a 2-3% mortgage or a 1% car loan while using your money in the stock market where it’s making good money.Right now, even with rising rates, I have new stocks I invested in 6 weeks ago making up to 80% gains, which will cover and 1% gain in interest rates if I had any loans.

How many USA companies are popular with people that build top notch products? John Deere, Harley Davidson, ps audio, and there are many others. The reason GM, Ford, and especially Stellantis aren’t selling is because they are terrible compared to just about any other auto manufacturer IMO of course.
I’ll never buy a gm, ford or Chrysler product, while I buy new imports every 2 years.


Very few new houses in the Villages go through the lottery system. Its only the bigger houses on view lots. Like your friends, we bid on 7 or 8 before finally winning one. The majority of new houses are on interior lots and they are not in the lottery, and sit on the market for a couple of months, sometimes more.

[vintageogauge]

Very few new houses in the Villages go through the lottery system. Its only the bigger houses on view lots. Like your friends, we bid on 7 or 8 before finally winning one. The majority of new houses are on interior lots and they are not in the lottery, and sit on the market for a couple of months, sometimes more.

But all new homes are eventually sold, not so much re-sales though unless they are on some type of view lot.

[Normal]

But all new homes are eventually sold, not so much re-sales though unless they are on some type of view lot.

Some within the month others almost a year. Dabney comes to mind. Are all the nice lots in the Enclave sold yet?

[Altavia]

Very few new houses in the Villages go through the lottery system. Its only the bigger houses on view lots. Like your friends, we bid on 7 or 8 before finally winning one. The majority of new houses are on interior lots and they are not in the lottery, and sit on the market for a couple of months, sometimes more.

Last reported average time on market for new in Eastport is 31 days.

I think GoldWingnut reported they're completing 12-15 new homes a day in that area.

[Bwanajim]

Since it will hurt the economy, I hope not. There are far more negatives to it, than the positives of higher bond rates. Hoping for high interest rates because of the bond market is flat out selfish in my opinion. We all know the negative impact of high interest rates that ripple through our society and it won’t be pretty. However, I’m not seeing anything planned or happening that is going to turn it around. The administration seems to be roaring down the train tracks full speed ahead, knowing the tracks go over a cliff. Yet, there is no change in direction.

I heard a recent plumbing company who sells a custom part manufactured in China recently ask at a conference that if they brought their manufacturing back to the US and built a plant and manufactured the part here it would be $285, vs their competitors that keep manufacturing theirs in China that cost $153, which will they buy? Of course, the majority said the $153 one. That is what we are up against. Manufacturing will never come back to the US unless it’s something highly specialized high tech. Until that’s realized we are in a forced unnecessary economic decline that never needed to happen.

Of course we can't compete with slave wages they pay in China, but in return we have no jobs. When i started my Drycleaners in 1979, ALL the clothes were made in the USA. By the late 1990s, nothing was made in the USA.
And 90% of our medicine comes from china. Thats not good, they own us.
I'm willing to pay more to bring manufacturing jobs back home. Yes it will take time, but it's worth it! .

[Road-Runner]

Yeah, ain't it nice for the plumber's bottom line! But what Americans don't understand is while 're they paying a little less for their plumbing, they are shelling out huge money in health care, food stamps, housing subsides, etc. because many people aren't making a decent wage in America. You'll pay the piper one way or the other and either be propping up this country or the other one.

I couldn't agree more. I have always chosen Made in the U.S.A. when available. In college Econ we talked about the 'Ripple Effect' of making things here and paying U.S. workers for their labor. Every dollar earned is spent repeatedly locally, where the worker buys groceries, goods or gas which supports a local business that also hires local workers who have the same effect when they spend their earnings, etc., etc., etc. For foreign made goods sold here has a ripple of say 3X, the locally manufactured product sold has like a 12-15X multiplier. The aforementioned plumbing example does not take any of this into consideration.

[jimjamuser]

Since it will hurt the economy, I hope not. There are far more negatives to it, than the positives of higher bond rates. Hoping for high interest rates because of the bond market is flat out selfish in my opinion. We all know the negative impact of high interest rates that ripple through our society and it won’t be pretty. However, I’m not seeing anything planned or happening that is going to turn it around. The administration seems to be roaring down the train tracks full speed ahead, knowing the tracks go over a cliff. Yet, there is no change in direction.

I heard a recent plumbing company who sells a custom part manufactured in China recently ask at a conference that if they brought their manufacturing back to the US and built a plant and manufactured the part here it would be $285, vs their competitors that keep manufacturing theirs in China that cost $153, which will they buy? Of course, the majority said the $153 one. That is what we are up against. Manufacturing will never come back to the US unless it’s something highly specialized high tech. Until that’s realized we are in a forced unnecessary economic decline that never needed to happen.
As to "we are in a forced economic decline". The economy cycles between boon and bust every 10 to 15 years. Nobody and no ONE factor determines a recession, depression, or boom years. We ALLOWED China to become a dominant world power when around 1975 we decided to offshore manufacturing to make a FEW corporations rich and eliminate Labor Unions. They succeeded, China succeeded, but the American middle class began to fail. We are NOTHING without a strong middle class. Our income tax system began in 1975 to de-emphasize the middle class with changes in the tax brackets and outsourcing. We began emphasizing the upper classes. Today, the reason the US Government NEEDS to bring back manufacturing is to have a strong military. We need to stay ahead of China in modern warfare capacity. We also need to have citizens with the educational skills to help the US stay ahead of China in advanced manufacturing techniques that MIGHT be needed in case of any conflict. As to the statement, " we are in a FORCED economic decline". In reality, any DECLINE in American productivity or GNP would be because of internal US self-inflicted problems, not problems caused by outside entities.

[Ptmcbriz]

I couldn't agree more. I have always chosen Made in the U.S.A. when available. In college Econ we talked about the 'Ripple Effect' of making things here and paying U.S. workers for their labor. Every dollar earned is spent repeatedly locally, where the worker buys groceries, goods or gas which supports a local business that also hires local workers who have the same effect when they spend their earnings, etc., etc., etc. For foreign made goods sold here has a ripple of say 3X, the locally manufactured product sold has like a 12-15X multiplier. The aforementioned plumbing example does not take any of this into consideration.

It doesn’t take it into consideration because it would never happen. Why? Because the US manufacturer would go out of business. He could never get a foot hold to test your theory because bottom line, the majority of people and businesses look at the bottom line and won’t pay more for an item when there is one for less made elsewhere.

[Aces4]

It doesn’t take it into consideration because it would never happen. Why? Because the US manufacturer would go out of business. He could never get a foot hold to test your theory because bottom line, the majority of people and businesses look at the bottom line and won’t pay more for an item when there is one for less made elsewhere.

And that is why the USA is trying to eliminate "elsewhere". Buy American.

[Harold.wiser]

I don't know where you get your information from but the 10 year T bill has NOT gone over 5%. Sure, it's gone up, but not that much!

[Ruger2506]

I love the higher interest rates. Gives me extra spending money.

My first mortgage was an 11% VA loan. That was considered a great rate at the time.

That would kill me buying another investment property. But it would seriously boost the other aspects of my investing life. So I suppose it is a win either way.

[Caymus]

And for whatever reason, new home sales were up over 10% last month. My first mortgage was over 12%.

[Jim1mack]

In 2014 we secured a rate of 4.75. Thirty year fixed. With a little shopping I think I could have found a lower one. Right now BankRate.com list the lowest rate of 5.99

[Pballer]

Interest rates aren't coming down because of rantings like today's threat of 25% tariffs on iPhones and 50% tariffs on imported EU products. Yawn.

[Normal]

In 2014 we secured a rate of 4.75. Thirty year fixed. With a little shopping I think I could have found a lower one. Right now BankRate.com list the lowest rate of 5.99

Yes, Bankrate has a great listing for buy downs. The national average can be skewed in your favor if you have the money to purchase a lower rate. Nerd wallet has a listing too for those shopping.. There is no need to pay the national average of 7%.