October 27, 2023: Mortgage interest rates are expected to fall in 2024, according to a consensus of experts. The average 30-year fixed-rate mortgage is currently around 7%, but experts predict it could drop to as low as 5.5% by the end of the year.
The Federal Reserve is expected to continue raising interest rates soon to combat inflation. However, economists believe the Fed will begin to lower rates in 2024 as inflation moderates.
“The economy and inflation should weaken next year, causing the Fed to lower rates,” said Ralph DiBugnara, founder of Home Qualified. “This will influence rates overall and should result in mortgage rates at or below 6%.”
Some experts believe that mortgage rates could fall even further in 2024. For example, Mike Hardy, managing partner at Churchill Mortgage, predicts that 30-year rates could be 5.25% by the end of the year.
“The housing market is already starting to cool, and this trend is expected to continue in 2024,” Hardy said. “This will put downward pressure on mortgage rates, as lenders compete for borrowers.”
The decline in mortgage rates is good news for potential homebuyers and those considering refinancing. Lower rates will make borrowing money to buy a home or refinance an existing mortgage more affordable.
However, it’s important to note that mortgage rates are just one factor when buying or refinancing a home. Other important factors include your credit score, down payment, and debt-to-income ratio.
Here are some tips for getting the best mortgage rate: