What Mortgage Rate Are You Waiting For?

What Mortgage Rate Are You Waiting For?

It's undeniable that mortgage rates have significantly impacted housing affordability over the past couple of years. However, there’s hope on the horizon. Rates have actually started to come down, and recently, they hit the lowest point we’ve seen in 2024, according to Freddie Mac (see graph below):

If you’re thinking about buying a home, you might be wondering: how much lower will rates go? Here’s some information to help you understand what to expect.

Expert Projections for Mortgage Rates

Experts believe the overall downward trend in mortgage rates should continue as long as inflation and the economy keep cooling. However, as new reports on these key indicators are released, there will likely be some volatility.

It's important not to let these fluctuations distract you from the larger trend. Rates are currently down roughly a full percentage point from their recent peak in May.

The general consensus is that rates in the low 6s are possible in the coming months, depending on the economy's performance and the Federal Reserve's decisions moving forward.

Many experts are already starting to revise their 2024 mortgage rate forecasts to be more optimistic about the potential for lower rates ahead. For example, Realtor.com says:

“Mortgage rates have been revised slightly lower as signals from the economy suggest that it will be appropriate for the Fed to begin to cut its Federal Funds rate in 2024. Our yearly mortgage rate average forecast is down to 6.7%, and we revised our year-end forecast to 6.3% from 6.5%.”

Know Your Number for Mortgage Rates

So, what does this mean for you and your plans to move? If you’ve been holding out and waiting for rates to come down, know that it’s already happening. Now, it’s up to you to decide, based on expert projections and your own budget, when you’re ready to jump back in. As Sam Khater, Chief Economist at Freddie Mac, says:

“The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”

As a next step, ask yourself this: what number do I want to see rates hit before I’m ready to move?

Maybe it’s 6.25%, 6.0%, or even 5.99%. The exact percentage where you feel comfortable starting your search again is personal. Once you have that number in mind, there’s no need to track rates on your own and wait for it to become a reality.

Instead, connect with a local real estate professional. They’ll keep you updated on what’s happening in the market and discuss when the right time might be for you to make your move. And once rates hit your target, they’ll be the first to let you know.

Bottom Line

If you’ve put your moving plans on hold due to higher mortgage rates, consider the rate that would motivate you to re-enter the market.

Once you have that number in mind, let’s connect so you have someone on your side to alert you when we reach that point.