Mortgage rates are expected to decrease by nearly 1% by year’s end — from 6.6% down to as little as 5.75% — according to recent housing forecasts. That’s good news for buyers, as the decrease would reduce their monthly mortgage costs by roughly $200 for a median-priced home.
On Thursday, 30-year fixed mortgage rates slid to 6.6% after peaking at 7.79% in October 2023, per Freddie Mac data. That’s the lowest they’ve been since May 2023.
Rates in 2024 are expected to “moderate toward a more normal level,” with 30-year fixed averages dropping below 6% by the end of the year, according to a revised outlook published by Fannie Mae’s Economic & Strategic Research group on Thursday.
This lines up with other recent projections:
•National Association of Realtors chief economist Lawrence Yun predicts 30-year fixed rates are expected to “hold steady” at 6% in “upcoming months.”
•The Mortgage Bankers Association projects 30-year rates of 6.1% by the end of 2024.
•More optimistically for homebuyers, Bankrate predicts average 30-year rates of 5.75% by the end of 2024.
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