It’s no secret that mortgage rates have significantly affected housing affordability over the past couple of years. But there’s reason for optimism—rates have started to come down, and recently, they hit the lowest point we’ve seen in 2024, according to Freddie Mac.
If you’re considering buying or selling a home, you’re probably wondering: how much lower could rates go? Here’s what you should know:
Expert Projections for Mortgage Rates
Experts believe the downward trend in mortgage rates will continue if inflation and the economy cool down. But remember, as new economic data is released, there will be some fluctuations along the way.
The important thing is not to get too distracted by these short-term blips. Rates are still down about a full percentage point from their peak in May, and many experts are adjusting their 2024 forecasts to reflect lower rates. For instance, Realtor.com expects rates to drop to 6.3% by the end of the year.
Know Your Number for Mortgage Rates
What does this mean for you? If you’ve been waiting for rates to drop, now’s the time to decide what would make you comfortable enough to buy. Whether it’s 6.25%, 6.0%, or even 5.99%, knowing your number will help you stay focused.
As Sam Khater, Chief Economist at Freddie Mac, says: “The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”
Rather than tracking rates yourself, let’s connect! I can help you stay informed about the current real estate market.
Bottom Line
If higher mortgage rates have caused you to pause your moving plans, now is the time to consider the rate that would make you feel ready to buy. I would love to help you achieve your real estate goals!
Source: KCM (Keeping Current Matters)
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