There’s no denying that rising mortgage rates have significantly impacted housing affordability in recent years. However, there’s hope on the horizon—rates have started to decline and recently hit their lowest point of 2024, according to Freddie Mac.

If you’re considering buying a home, you might be wondering how much lower rates could go. Here’s what you need to know.

Expert Projections for Mortgage Rates

Experts predict that the downward trend in mortgage rates will continue as long as inflation and the economy continue to cool. While there may be some fluctuations, the general trend is positive, with rates now roughly a full percentage point lower than their recent peak in May.

The consensus is that rates in the low 6% range are possible in the coming months, depending on economic conditions and the Federal Reserve’s actions. Many experts are revising their 2024 forecasts to reflect this optimism. For example, Realtor.com has lowered its yearly mortgage rate forecast to 6.7% and its year-end forecast to 6.3%.

Know Your Number for Mortgage Rates

So, what does this mean for you? If you’ve been waiting for rates to drop, it’s already happening. Now, it’s up to you to decide when you’re comfortable re-entering the market based on expert projections and your budget. As Sam Khater, Chief Economist at Freddie Mac, says, “The decline in mortgage rates increases prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”

To take the next step, think about the rate you’d like to see before you’re ready to buy—whether that’s 6.25%, 6.0%, or 5.99%. Once you’ve set your target rate, you don’t need to monitor rates daily.

Instead, connect with a local real estate professional. They’ll keep you informed about rate changes and let you know when your target rate is reached.

Bottom Line

If you’ve been holding off on moving due to high mortgage rates, now’s the time to think about the rate that would make you reconsider. Once you’ve identified that number, reach out to a real estate professional who can keep you updated and help you take action when the time is right.

Data Source