Sandy Herrick Answers – Will 2024 Mortgage Rates Fall?

Today, mortgage rates are still historically elevated. But they’ve dropped considerably since October, even dipping into 6% territory five times since Christmas. The current average is a bit higher than that, but still more than a full percentage point below the 8.45% peak of last fall.

KEY TAKEAWAYS

  • The Federal Reserve Wednesday announced its fifth rate hold in a row, after hikes in 2022 and 2023 raised the federal funds rates to almost a 23-year high.
  • The Fed’s rate moves do not directly drive mortgage rates. But they can trigger dominoes that impact the rates lenders are willing to offer.
  • Inflation is one of the biggest drivers of mortgage rates, and it remains stubbornly above the Fed’s 2% target level.
  • Mortgage rates surged to a 20-year high in October, but have since dropped more than a percentage point.
  • The Fed said Wednesday it’s still watching and waiting for more good news on inflation and jobs before considering a rate cut. But it is forecasting three rate decreases by the end of 2024.
Sandy Herrick
Senior Sales Executive – CRNC, LRE
ReeceNichols Real Estate, a Berkshire Hathaway Affiliate
8001 College Blvd, Suite 100, Overland Park, KS  66210
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Licensed in both Kansas and Missouri
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