There’s no denying that mortgage rates have significantly influenced housing affordability over the past couple of years. However, there’s a silver lining: rates have started to decrease. According to Freddie Mac, we recently saw the lowest mortgage rates in 2024. This shift brings renewed hope for prospective homebuyers. So, how much lower can rates go? Let’s dive into what the experts are saying.
Expert Projections for Mortgage Rates
Experts predict that the downward trend in mortgage rates will continue as long as the economy and inflation cool off. However, expect some fluctuations as new economic reports are released.
Despite these occasional blips, it’s essential to focus on the larger trend. Rates are currently down about a full percentage point from their recent peak in May. Many experts believe that rates in the low 6% range are attainable in the coming months, depending on the economy and Federal Reserve decisions.
Most experts are already revising their 2024 mortgage rate forecasts to reflect this optimism. For instance, Realtor.com states:
“Mortgage rates have been revised slightly lower as signals from the economy suggest that it will be appropriate for the Fed to begin to cut its Federal Funds rate in 2024. Our yearly mortgage rate average forecast is down to 6.7%, and we revised our year-end forecast to 6.3% from 6.5%.”
Determine Your Ideal Mortgage Rate
What does this mean for your home-buying plans? If you’ve been waiting for rates to drop, it’s already happening. Now, it’s up to you to decide when you feel comfortable re-entering the market. As Sam Khater, Chief Economist at Freddie Mac, points out:
“The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”
To get started, ask yourself: What rate am I looking for before I’m comfortable making a move? Is it 6.25%? 6.0%? Or perhaps 5.99%? The exact rate you’re waiting for is a personal decision. Once you have that number in mind, you don’t need to monitor rates yourself continuously.
Partner with a Local Real Estate Professional
Instead, connect with a local real estate professional — like me! I can provide you with updates on current rates and discuss when it may be the right time for you to move based on your personal target rate. When the rates hit your desired number, I’ll alert you immediately.
Bottom Line
If you’ve paused your moving plans due to higher mortgage rates, now is the time to think about the rate that would encourage you to re-enter the market. Once you have that figure in mind, let’s connect so that you have an expert on your side to notify you when we reach that rate.
If I can help you or someone that you care about, please reach out to me directly!
Thanks for reading!
Brandon Yopp