U.S. housing forecast: More sales, with higher prices, interest rates

U.S. housing forecast: More sales, with higher prices, interest rates “With higher mortgage rates, you’re increasing the cost, challenging the budgets, challenging the ability to qualify and, as a result, likely reducing somewhat the pool of potential buyers,” said Jonathan Smoke, chief economist for Realtor.com. Smoke predicts mortgage rates will reach 4.5 percent in 2017. Other economists expect rates will remain above 4 percent but not go beyond 5 percent next year. That range would mean mortgage rates that would be low compared with the past decade.