Mortgage rates hold steady, offering slight relief to homebuyers as experts predict gradual declines throughout 2024.
During the week of March 22nd to March 28th, the mortgage market saw little change in interest rates, with both 30-year and 15-year rates remaining stable. This slight dip offered potential relief to homebuyers. Although mortgage rates continue to hover near seven percent, markets are keeping an eye on signs of cooling inflation in hopes of further rate decreases.
Market experts predict a gradual decline in mortgage rates throughout 2024, especially as the Federal Reserve gears up for anticipated interest rate cuts later this year. Forecasts from various sources provide a range of expectations:
- Freddie Mac anticipates rates to stay above 6.5% in the near term, with a potential drift down to 6% by year-end.
- Fannie Mae forecasts a Q2 average of 6.3%, gradually decreasing to 5.9% by Q4.
- The National Association of Realtors projects rates to linger between 6% to 7% for the year.
- Other analysts, such as RSM U.S. Real Estate and the Mortgage Bankers Association, offer similar predictions of gradual rate declines throughout the year.
Looking ahead to the Federal Open Market Committee meeting on May 11th, forecasts suggest a high likelihood of interest rates remaining unchanged, with a small percentage anticipating a decrease.
These insights indicate a cautiously optimistic outlook for the mortgage market, with expectations of easing rates providing potential relief for homebuyers amidst ongoing economic uncertainties.