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Mortgage rates have finally settled into a downward groove—at least for now.
The average 30-year fixed mortgage rate declined significantly in August since hitting a 2024 high of 7.22% to start May.
The average rate on the benchmark 30-year mortgage dropped 22 basis points between July and August, landing at 6.73% the week ending August 1, according to Freddie Mac data. A basis point is one one-hundredth of a percentage point.
Nonetheless, many housing market experts don’t expect mortgage rates to recede meaningfully in the coming months, even if the Federal Reserve cuts its benchmark interest rate at its September meeting.
Mortgage Rate Predictions for 2024
Here is how some experts predict market conditions will affect the average 30-year, fixed-rate mortgage in Q3 2024 and beyond:
Freddie Mac: Rates will remain elevated through most of 2024
In its July Economic, Housing and Mortgage Market Outlook forecast, Freddie Mac said it anticipates that the central bank will approve one rate cut later this year. While this should prompt a gradual easing of mortgage rates, the mortgage giant expects mortgage rates to remain above 6.5% through the end of the year and then descend below 6.5% in 2025.
Fannie Mae: Rates will average 6.8% in Q3 and 6.7% in Q4
Fannie Mae expects the average 30-year fixed…
