Mortgage rates have significantly impacted housing affordability in recent years, but there’s a silver lining: rates are starting to come down. According to Freddie Mac, they’ve recently hit their lowest point since 2024.
If you’re considering buying a home, you’re probably wondering how much lower rates might go. Here’s what you need to know:
Expert Projections for Interest Rates
Experts predict that mortgage rates will continue to decline as long as inflation and the economy cool off. However, as new economic data is released, there will be some ups and downs along the way.
The key is not to get too caught up in the short-term fluctuations. Rates are currently down about a full percentage point from their peak in May, and many experts are adjusting their 2024 forecasts to reflect lower rates. Realtor.com, for example, now 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 the right time to buy, now’s the time to decide what rate would make you comfortable enough to jump back in. Whether it’s 6.25%, 6.0%, or 5.99%, knowing your number will help you act when the time is right.
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.”
Instead of trying to track rates independently, let's connect. Together, we can keep you informed and let you know when your target rate is within reach.
Bottom Line
As interest rates drop and more buyers return, Sellers may wish to time the market with this drop, as home values are likely to rise.
We would love to give you expert real estate advice about the impact of mortgage rates on your real estate goals. Let’s talk today.
Source: KCM (Keeping Current Matters)
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