There’s no denying that interest rates have significantly impacted housing affordability over the past couple of years. But there’s good news on the horizon: rates are starting to come down, and they’ve recently hit their lowest point of 2024, according to Freddie Mac.
If you’re considering buying a home, you might wonder how much lower rates could go. Here’s what you should know:
Expert Projections for Interest Rates
Experts believe that mortgage rates will continue to trend downward as long as inflation and the economy cool off. However, as new economic data is released, expect some bumps along the way.
Even with these fluctuations, rates are still down about a full percentage point from their peak in May. Many experts are revising their 2024 forecasts to be more optimistic, with Realtor.com adjusting its year-end forecast to 6.3%.
Know Your Number
So, what does this mean for you? If you’ve been holding off on buying a home, now’s the time to decide what rate would make you comfortable enough to jump back in. Whether it’s 6.25%, 6.0%, or even 5.99%, knowing your number will help you stay focused.
As Sam Khater, Chief Economist at Freddie Mac, points out: “The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”
Bottom Line
If higher mortgage rates have put your moving plans on hold, now is the time to figure out the rate that would make you feel comfortable buying.
Once you’ve identified your target rate, contact Carmen and Dustin, your Seattle real estate experts, for guidance.
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