Projected Interest Rates in 5 Years: How Much Will Rates Rise?

Abstract

Projected Interest Rates in 5 Years Unless you have a crystal ball that can predict the future, it's impossible to know how much interest rates will rise in the coming five years. Due to rising short-term rates, long-term Treasury bond interest rates are likely to grow until 2026. Long-term interest rates are partially determined by investors' expectations about the future path of short-term interest rates. As the Federal Reserve tightens monetary policy, the interest rate on 10-year Treasury notes will climb from 1.5 percent in the fourth quarter of 2021 to 2.7 percent in the fourth quarter of 2022, indicating a higher future path for short-term interest rates. The 30 Year Mortgage Rate forecast at the end of the year is projected to be 13.9%. 30-Year Mortgage Interest Rate Projected Forecast 2025 The 30 Year Mortgage Rate will continue to rise further in 2025. The 30 Year Mortgage Rate forecast at the end of the year is projected to be 16.25%. Mortgage Interest Rate Projected Forecast 2026 The 30 Year Mortgage Rate will continue to rise further in 2026. Why Should You Care About Projection of Interest Rates? The higher the interest rate, the less attractive the opportunity to borrow money at that rate is for you as a homebuyer.