See attached! Take it with a grain of salt, but it is interesting to see what these large institutions are projecting. In terms of interest rates, they expect 30-year rates to stay around 6% in 2026. Use this fact to help on-the-fence buyers or sellers understand that 3% rates are likely NOT right around the corner.

Attached is an estimated illustration of a seller-paid temporary rate buydown—examples include 3-2-1, 2-1, and 1-0 structures. As Ophir has mentioned, this can be a powerful tool for both buyers and sellers. Please reach out with any questions. NMLS #486122

Courtesy of Freddie Mac

This article from Fannie Mae aims to answer that exact question. If you don't have time to read the full article, below is an AI-generated summary: Mortgage rates are closely tied to the 10‑year U.S. Treasury yield, which reflects investor expectations about short‑term interest rates, inflation, economic growth, and fiscal policy. Even when the Federal Reserve cuts rates, mortgage rates can rise if economic data is strong or inflation remains persistent. Recently, resilient economic performance and inflationary pressures have pushed Treasury yields higher, leading to an increase in mortgage rates. Call me to discuss!