Interest rates are a key factor in the housing market, influencing affordability and demand. As of early 2024, the 30-year fixed mortgage rates have been observed around the 6% mark. Fannie Mae’s Housing Forecast suggests that the 30-year fixed rate mortgage will average 6.3% in the second quarter of 2024 but is expected to slowly decline over the year, landing at an average of 5.9% in the fourth quarter .
Moreover, projections from other respected sources, such as the Mortgage Bankers Association and Fannie Mae, anticipate a further decrease in mortgage rates by the end of 2024. Specifically, the Mortgage Bankers Association expects rates to fall to 6.1%, while Fannie Mae forecasts a slightly more optimistic scenario with rates dropping to 5.8% . These forecasts suggest a potential easing of rates, offering a glimmer of hope for both buyers and the real estate market overall.
Given these projections, if you are considering buying a home or refinancing your mortgage, it might be wise to keep a close eye on the trends and consider acting later in the year when rates are expected to be more favorable.