What’s YOUR Ideal Mortgage Rate?
Mortgage rates have significantly impacted housing affordability in recent years, but there’s hope. Rates are declining, recently hitting 2024’s lowest point, per Freddie Mac.
If you’re considering buying a home, you might be wondering how much further mortgage rates will drop. Here’s what experts are saying:
Expert Projections for Mortgage Rates
Experts predict that mortgage rates will continue their downward trend as long as inflation and the economy keep cooling. However, expect some volatility as new reports on these key factors are released.
It’s important to stay focused on the bigger picture rather than short-term fluctuations. Rates are already down about a full percentage point from their peak earlier this year in May.
Looking ahead, many experts agree that rates in the low 6s are possible, depending on the economy’s performance and decisions from the Federal Reserve. In fact, several are revising their 2024 forecasts to reflect more optimism for lower rates. Realtor.com, for example, shares this positive outlook.
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%.
Understanding Mortgage Rates and Timing Your Move
What does this mean for your plans to buy a home? If you’ve been waiting for mortgage rates to drop, the good news is that they are already starting to decline. Now, it’s up to you to decide when the time is right, based on expert forecasts and your personal budget. As Sam Khater, Chief Economist at Freddie Mac, puts it:
“The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”
As a next step, consider this: what mortgage rate are you comfortable with before moving? It could be 6.25%, 6.0%, or perhaps 5.99%. The specific rate you’re waiting for is a personal decision. Once you’ve determined your target, you don’t need to track rates yourself. Instead, partner with a local real estate professional who can keep you informed about market trends. They’ll monitor rates for you and notify you as soon as your ideal rate becomes available, ensuring you’re ready to take action.
If you’ve put your moving plans on hold because of higher mortgage rates, think about the number you want to see rates hit that would make you re-enter the market. Once you have that number in mind, let’s connect!
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