Some Experts Say Mortgage Rates May Fall Below 6% Later This Year

Dated: February 22 2024

Views: 13

Some Experts Say Mortgage Rates May Fall Below 6% Later This Year




There’s a lot of confusion in the market about what’s happening with day-to-day movement in mortgage rates right now, but here’s what you need to know: compared to the near 8% peak last fall, mortgage rates have trended down overall.

And if you’re looking to buy or sell a home, this is a big deal. While they’re going to continue to bounce around a bit based on various economic drivers (like inflation and reactions to the consumer price index, or CPI), don’t let the short-term volatility distract you. The experts agree the overarching downward trend should continue this year.

While we won’t see the record-low rates homebuyers got during the pandemic, some experts think we should see rates dip below 6% later this year. As Dean Baker, Senior Economist, Center for Economic Research, says:

“They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.

And Baker isn’t the only one saying this is a possibility. The latest Fannie Mae projections also indicate we may see a rate below 6% by the end of this year (see the green box in the chart below):

 a screenshot of a graph

The chart shows mortgage rate projections for 2024 from Fannie Mae. It includes the one that came out in December and compares it to the updated 2024 forecast they released just one month later. And if you look closely, you’ll notice the projections are on the way down.

It’s normal for experts to re-forecast as they watch current market trends and the broader economy, but what this shows is experts are feeling confident rates should continue to decline if inflation cools.

What This Means for You

But remember, no one can say what will happen (and by when) – and short-term volatility is to be expected. So, don’t let small fluctuations scare you. Focus on the bigger picture.

If you’ve found a home you love in today’s market – especially where finding a home that meets your budget and needs can be challenging – it’s probably not a good idea to try to time the market and wait until rates drop below 6%.

With rates already lower than they were last fall, you have an opportunity in front of you right now. That’s because even a small quarter-point dip in rates gives your purchasing power a boost.

Bottom Line

If you wanted to move last year but were holding off hoping rates would fall, now may be the time to act. Let’s connect to get the ball rolling.

Blog author image

Marcus Roth

Welcome to my world of real estate, where my passion for helping clients like you find their dream home or navigate successful selling is more than just a profession—it's my purpose. I'm Marcus ....

Latest Blog Posts

Does It Make Sense To Buy a Home Right Now?

Does It Make Sense To Buy a Home Right Now?Thinking about buying a home? If so, you're probably wondering: Should I buy now or wait? Nobody can make that decision for you, but here's

Read More

Homeowners Today Have Options To Avoid Foreclosure

Homeowners Today Have Options To Avoid ForeclosureEven with the latest data, the experts agree there’s no chance of a large-scale foreclosure crisis like the one we saw in 2008. While

Read More

4 Tips To Make Your Strongest Offer on a Home

4 Tips To Make Your Strongest Offer on a HomeAre you thinking about buying a home soon? If so, you should know today’s market is competitive in many areas because the number of homes

Read More

The Latest Trends in Housing [INFOGRAPHIC]

The Latest Trends in Housing [INFOGRAPHIC]Some HighlightsWith the number of new listings going up and average days on the market going down, buyers may have more options,

Read More