Mortgage rates expected to exceed 6% – what’s next?

As the U.S. Federal Reserve is expected to raise interest rates in response to continuing high inflation, most analysts believe mortgage rates will exceed 6 percent by the end of the year, if not sooner.

Just a year ago, mortgage rates stood at 2.88 percent and, as of the week of September 8, are now 5.89 percent. Many buyers are leaving the market, meaning sellers will have to make adjustments – primarily lowering their asking price.

Analysts also worry that continued rate hikes will push the country closer to a recession.