What Mortgage Rate Are You Waiting For?

You will not discover anyone who’s going to argue that home loan rates have had a big influence on real estate cost over the past couple of years. But there is hope on the horizon. Rates have in fact begun to come down. And, just recently they hit the floor we’ve seen in 2024, according to Freddie Mac (see graph below):

And if you’re considering buying a home, that may leave you wondering: how much lower are they going to go? Here’s some info that can assist you know what to expect.

Professional Projections for Mortgage Rates

Professionals state the general down pattern must continue as long as inflation and the economy keeps cooling. But as new reports come out on those key indications, there’s going to be some volatility occasionally.

What you need to bear in mind is it’s not smart to let those blips distract you from the larger trend. Rates are still down roughly a complete percentage point from the current peak compared to May.

And the basic consensus is that rates in the low 6s are possible in the months ahead, it just depends on what happens with the economy and what the Federal Reserve chooses to do progressing.

Many professionals are currently beginning to revise their 2024 mortgage rate forecasts to be more optimistic that lower rates are ahead. For example, Realtor.com says:

” Mortgage rates have been modified a little lower as signals from the economy suggest that it will be appropriate for the Fed to start to cut its Federal Funds rate in 2024. Our annual home mortgage rate typical 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 on rates to come down, understand that it’s already occurring. You simply have to decide, based upon the specialist forecasts and your own budget plan, when you’ll want to leap back in. As Sam Khater, Chief Economist at Freddie Mac, says:

” The decrease in home mortgage rates does increase prospective property buyers’ buying power and ought to begin to pique their interest in making a move.”

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

Perhaps it’s 6.25%. Maybe it’s 6.0%. When they strike 5.99%, or perhaps it’s. The precise portion where you feel comfortable beginning your search again is personal. Once you have that number in mind, you don’t need to follow rates yourself and wait for it to come true.

Rather, connect with a local real estate expert. They’ll help you keep up to date on what’s occurring and have a conversation about when to make your relocation. And once rates hit your target, they’ll be the very first to let you understand.

Bottom Line

If you’ve put your moving intend on hold because of greater home loan rates, think about the number you want to see rates strike that would make you re-enter the marketplace.

As soon as you have that number in mind, let’s link so you have someone in your corner to let you understand when we get there.

Rates have really begun to come down. Many experts are currently beginning to modify their 2024 home loan rate projections to be more positive that lower rates are ahead. If you’ve been holding out and waiting for rates to come down, understand that it’s already occurring. Or maybe it’s when they hit 5.99%. They’ll help you remain up to date on what’s taking place and have a discussion about when to make your move.