The growing national deficit could soon lead to a dramatic spike in mortgage rates unless federal revenues catch up with spending, former Treasury Secretary Larry Summers warned during a speech on Monday.

Rates, which recently fell to their lowest level in months in anticipation of the Federal Reserve’s decision to cut its key rate in September, “are considerably more likely to rise than fall from here,” Summers said while speaking at this year’s Mortgage Bankers Association (MBA) annual conference in Las Vegas.

‘Unsustainable’ Scenario ‘Most Likely’

As of October 16, according to Freddie Mac, the average 30-year fixed-rate mortgage was 6.27 percent. The rate was down 0.17 percentage points from a year earlier and down from its October 25, 2023, peak of 7.79 percent. Still, it was m

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