Experts believe that mortgage rates are set to fall in 2024.
After a year where mortgage rates soared to their highest since the turn of the century, analysts are more optimistic that the cost of a home loan is likely to fall in 2024.
Mortgage rates went up partly due to the Federal Reserve’s instituting aggressive interest rate hikes to battle historic high levels of inflation. The central bank has seen inflation slow to 3.1 percent in November. Policymakers held rates at their meeting in December at their current rate of 5.25 to 5.5 percent for the third time in a row. The move prompted experts to suggest that the Fed was done with raising rates.
Policymakers also suggested that they may begin cutting rates in 2024. They project that in 2024, the federal funds rate will fall to 4.6 percent. If this prediction holds, it could spark increased declines in mortgage rates as well.
Over the last few weeks, the 30-year fixed rate has declined to 6.61, according to Freddie Mac. Economists expect the drop to continue in the new year.
