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- Inflation and Fed hikes have pushed mortgage rates up to a 20-year high.
- 30-year mortgage rates are currently expected to fall to between 6.5% and 7% in 2024.
- Homebuyers might consider buying now and refinancing later to avoid increased competition when rates drop.
Good news for borrowers: The wait for lower rates may soon be over. As inflation slows and the economy cools off, mortgage rates should start trending down at some point this year.
Inflation has been somewhat sticky in recent months, but it’s generally expected to continue decelerating this year. This means the Federal Reserve may be able to start cutting the federal funds rate later in 2024. This would remove a lot of upward pressure off of mortgage rates.
The not-so-good news: Rates probably won’t go back to the historic lows we saw in 2020 and 2021. And once rates fall, homebuyers will likely have other challenges to contend with, including increased competition and rising home prices.
Will mortgage rates go down in 2024? Right now, it’s looking like they will, but there are some things homeowners and buyers…
