This is when you can expect mortgage rates to go down — and why you should buy before a recession hits

In recent years, mortgage rates in the US have soared to their highest levels in more than two decades, leaving many potential homebuyers and sellers wary. 

The Federal Reserve’s efforts to combat languishing inflation have played a significant role, as the central bank raised interest rates 11 times from 2022 to 2023, taking the benchmark federal funds rate from 0% to 5.25-5.50%

Forecasts indicate that 30-year mortgage rates, currently around 7.1%, might drop to 6.6% by the end of 2024, and further down to 5.9% by the end of 2025. However, experts caution that for mortgage rates to decline significantly, inflation must also fall.

“Home prices continue to increase at 5% to 6% year over year, and with the loss in appreciation and loan pay-down, the longer the buyer waits, the more they lose the opportunity to improve their net worth”.

https://nypost.com/2024/06/10/real-estate/this-is-when-you-can-expect-mortgage-rates-to-go-down/