Goldman Delivers Sobering Rates Outlook For Homebuyers

Uncertainty is running high among prospective homebuyers as elevated mortgage rates have pushed buying conditions to the worst levels in decades. While many are hoping for rate relief in the second half, a new Goldman "Housing and Mortgage Monitor" report suggests that relief is unlikely anytime soon.

Goldman analysts, led by Vinay Viswanathan, have revised their year-end forecast for 30-year conforming mortgage rates to 6.75%, up from a prior estimate of 6.1%, reflecting a higher rate environment through year's end. The current yield on the 30-year mortgage rate currently trends around 6.94%, according to Bankrate data.