Let’s face it: mortgage rates have made buying a home feel like a rollercoaster ride over the past couple of years. But here’s the good news: things are starting to look up! Rates have been dipping recently, hitting their lowest point in 2024, according to Freddie Mac (check out the graph below):

So, if you’re thinking about diving into the housing market, you might be wondering just how much lower they’re going to drop. Let’s break it down!

What Experts Think About Mortgage Rates

Experts believe the trend of lower rates should keep rolling as inflation and the economy cool down. However, expect a few bumps along the way when new reports come out about those important indicators.

The key takeaway? Don’t let the occasional blip throw you off track. Right now, rates are about a full percentage point lower than their peak back in May.

Most folks agree that we could see rates in the low 6s in the coming months, depending on how the economy plays out and what the Federal Reserve decides to do.

Already, many experts are getting a bit more hopeful about 2024 mortgage rate forecasts. For instance, Realtor.com recently shared:

“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 Sweet Spot for Mortgage Rates

So, what does all this mean for you? If you’ve been waiting for mortgage rates to fall, the good news is—they’re already doing just that! It’s time to think about your budget and when you might be ready to jump back in.

As Sam Khater, Freddie Mac’s Chief Economist, puts it: “The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”

Now, ask yourself: what rate would get you excited enough to start house hunting again? Is it 6.25%? Maybe 6.0% or even 5.99%? Your comfort zone is personal, so once you have that number in mind, there’s no need to obsess over rates.

Instead, reach out to a local real estate pro. They’ll keep you in the loop about what’s happening in the market and can help you decide when to make your move. Plus, when rates hit your target, they’ll be the first to let you know!

Bottom Line

If higher mortgage rates have stalled your moving plans, it’s time to figure out what rate would get you back in the game. Once you’ve got that number, let’s connect! I’m here to help you navigate the market and keep an eye out for that perfect moment.