Some Experts Say Mortgage Rates May Fall Below 6% Later This Year

Some Experts Say Mortgage Rates May Fall Below 6% Later This Year




There’s a lot of confusion in the market about what’s happening with day-to-day movement in mortgage rates right now, but here’s what you really need to know: compared to the near 8% peak last fall, mortgage rates have trended down overall.

And if you’re looking to buy or sell a home, this is a big deal. While they’re going to continue to bounce around a bit based on various economic drivers (like inflation and reactions to the consumer price index, or CPI), don’t let the short-term volatility distract you. The experts agree the overarching downward trend should continue this year.

While we won’t see the record-low rates homebuyers got during the pandemic, some experts think we should see rates dip below 6% later this year. As Dean Baker, Senior Economist, Center for Economic Researchsays:

“They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.

And Baker isn’t the only one saying this is a possibility. The latest Fannie Mae projections also indicate we may see a rate below 6% by the end of this year (see the green box in the chart below):

 a screenshot of a graph

The chart shows mortgage rate projections for 2024 from Fannie Mae. It includes the one that came out in December, and compares it to the updated 2024 forecast they released just one month later. And if you look closely, you’ll notice the projections are on the way down.

It’s normal for experts to re-forecast as they watch current market trends and the broader economy, but what this shows is experts are feeling confident rates should continue to decline, if inflation cools.

What This Means for You

But remember, no one can say for sure what will happen (and by when) – and short-term volatility is to be expected. So, don’t let small fluctuations scare you. Focus on the bigger picture.

If you’ve found a home you love in today’s market – especially where finding a home that meets your budget and your needs can be a challenge – it’s probably not a good idea to try to time the market and wait until rates drop below 6%.

With rates already lower than they were last fall, you have an opportunity in front of you right now. That’s because even a small quarter point dip in rates gives your purchasing power a boost.

Bottom Line

If you wanted to move last year but were holding off hoping rates would fall, now may be the time to act. Let’s connect to get the ball rolling. Contact us today at 248.755.3545 to see what programs you qualify for, ask about the FREE closing costs and downpayment if you are a first-time homebuyer. 

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Neighborhood: Virginia Park Sub
1
Beds
1
Baths
648
Sq.Ft.
1924
Year Built
1
Day on Site
20240050132
MLS
3
Beds
1F11/2
Baths
1,176
Sq.Ft.
1975
Year Built
4
Days on Site
61050147835
MLS
$225,000
Neighborhood: Northpointe Village Of Chesterfield Condo #817
2
Beds
2
Baths
1,395
Sq.Ft.
2014
Year Built
5
Days on Site
20240048493
MLS
Open 7/14
23040 Rosewood St Oak Park,  MI 48237
$199,999
Neighborhood: Oak Park Sub - Oak Park
3
Beds
1F11/2
Baths
845
Sq.Ft.
1950
Year Built
6
Days on Site
20240048225
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Open 7/13
39479 N Blom Dr Dr Harrison Twp,  MI 48045
$349,900
Neighborhood: Cloverleaf Estates Sub
3
Beds
1F11/2
Baths
1,218
Sq.Ft.
1973
Year Built
15
Days on Site
58050146909
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Open 7/13
2387 Country Club Davison Twp,  MI 48423
$389,999
Neighborhood: Atherton Country Club Estates No 2
4
Beds
2F21/2
Baths
1,768
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1992
Year Built
17
Days on Site
20240045452
MLS
$360,000
Neighborhood: Warner Creek Sub
5
Beds
3
Baths
1,426
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1988
Year Built
25
Days on Site
20240043033
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$734,900
Neighborhood: Whispering Hills
4
Beds
2F11/2
Baths
3,288
Sq.Ft.
1987
Year Built
28
Days on Site
20240041826
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$39,999
Neighborhood: Kaiser Gardens
2
Beds
1
Baths
652
Sq.Ft.
1938
Year Built
30
Days on Site
20240041664
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$115,000
Neighborhood: Sawyers Keego Harbor Sub
0.18
Acres
30
Days on Site
20240041864
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$229,900
Neighborhood: Scotts Addition
3
Beds
2
Baths
1,380
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1950
Year Built
33
Days on Site
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$410,000
Neighborhood: Lake Orion Groves Sub - Orion Twp
4
Beds
2
Baths
1,670
Sq.Ft.
1940
Year Built
51
Days on Site
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