2024 Mortgage Rate Predictions

The results are in: See where the big players are predicting the 30-year fixed mortgage rates will fall each quarter.

Summary: Fannie Mae leads the optimistic pack, forecasting that we'll see rates back below 6% by the end of the year. MBA and NAR are close by landing just above 6%.

Key takeaways: No one has a crystal ball, but everyone believes that rates will continue to fall throughout 2024. Promising! However, there also seems to be a consensus that the decent will be slow. A potentially painful prediction for buyers waiting for the right time to jump in.

What this means for buyers: While the lack of inventory is creating upward pressure on home prices, the lack of buyers is offsetting it with some downward pressure. If mortgage rates continue to go down, more buyers will enter the market, increasing competition and potentially driving home prices even higher.

What this means for sellers: 89% of homeowners have a mortgage rate below 6% and 59.4% have a rate below 4%. Those people likely are not moving and trading their low interest rate in unless they have to. This means supply will likely remain low and sales prices justifiably higher. If interest rates dip below 6%, this may bring some current homeowners into the market, increasing inventory and potentially driving prices down.

Source: Business Insider