On the latest episode of Capitol Gains, Whalen Global Advisors Chairman Chris Whalen joins host Rachelle Akuffo, Washington Correspondent Ben Werschkul, and senior columnist Rick Newman to discuss the outlook for mortgage rates in the near future.

As the national debt ticks up, Whalen notes that he expects short-term rates will decrease, while long-term rates rise. While Whalen’s colleagues in the mortgage industry are hopeful that residential mortgages will return to rates in the range of 4 to 5%, Whalen is less optimistic.

“We’re not going to see any kind of refinance activity in the US unless you get thirty-year mortgage rates below 5%,” he explains. “I don’t think that’s going to happen anytime soon.”

“What I foresee happening is that the Treasury is going to force the Fed to help them finance the deficit,” Whalen explains, noting he expects it to occur “inside of one year.”

“We could have 8% mortgage rates in this country by the middle of next year,” he predicts.

To find out more, listen to the full episode of Capitol Gains here. For more expert insight and the latest market action, click here to watch more Capitol Gains.

This post was written by Nick Riccardo.