Mortgage rates have significantly impacted housing affordability in recent years, but there’s promising news on the horizon. Rates have recently dropped to their lowest point of 2024, according to Freddie Mac. If you're considering buying a home, you might be wondering how much lower they could go. Here’s what you should know:
Expert Projections for Mortgage Rates
Experts predict that the overall downward trend in mortgage rates is likely to continue, provided inflation and the economy remain stable. However, keep in mind that short-term fluctuations are expected due to ongoing economic reports.
It’s important not to let these short-term changes distract you from the broader trend. Rates are currently about a full percentage point lower than their recent peak in May.
Looking ahead, many experts anticipate that rates could fall into the low 6% range in the coming months. This projection depends on future economic developments and decisions made by the Federal Reserve.
Recent updates from Realtor.com suggest a more optimistic outlook for 2024, with their forecast for the average mortgage rate revised to 6.7% for the year and a year-end estimate of 6.3%.
Know Your Target Mortgage Rate
So, what does this mean for your home buying plans? If you’ve been waiting for rates to decrease, they are already trending downwards. The next step is to determine the mortgage rate at which you’d feel comfortable moving forward with your purchase.
You might be aiming for a rate of 6.25%, 6.0%, or even 5.99%. Whatever your target, having this number in mind will help you make an informed decision about when to re-enter the market.
Once you know your target rate, connect with a local real estate professional. They can keep you updated on market changes and notify you when rates reach your desired level.
Bottom Line
If higher mortgage rates have caused you to postpone your move, identify the rate that will prompt you to start looking again. With your target rate in mind, reach out to a real estate expert who can guide you through the process and alert you when the time is right.
