Updated

U.S. home sales declined last month as mortgage rates climbed to their highest level in more than a year, according to newly released data. The drop signals continued strain on the housing market as elevated borrowing costs weigh on buyer demand, adding to a broader picture of housing-market softness this year. A new forecast looking out through 2031 offered data-driven predictions for where mortgage rates may head over the next five years, providing context for how long elevated borrowing costs could continue to weigh on home sales and affordability. The forecast adds a longer-term dimension to concerns about the housing market's near-term slowdown.