The era of ultra-low mortgage rates is likely over, according to the National Association of Realtors' top economist. Dr. Lawrence Yun contends that expecting a return to the 3% rates seen in recent years is unrealistic due to fundamental economic changes.
Yun's analysis points to persistent inflationary pressures and a shift in Federal Reserve policy as primary drivers. These factors, he argues, have structurally reset the baseline for long-term interest rates. The economist's comments come amid a housing market still adjusting to significantly higher borrowing costs compared to the pandemic-era lows.