2. Where Do I Think Mortgage Rates Are Heading? We know based on the latest reports that inflation has moderated from its peak. This is an encouraging sign for the market and for mortgage rates. Here’s why. When inflation cools, mortgage rates generally fall in response. This may be why some experts are saying mortgage rates will pull back slightly over the next few quarters.
Mortgage Rate Projections
Average of All Three
Quarter
Fannie Mae
MBA
NAR
2023 Q4 2024 Q1 2024 Q2 2024 Q3
6.40% 6.17% 5.97% 5.83%
6.70% 6.20% 6.30%
6.50% 5.90% 6.10%
6.30% 5.60% 6.00%
6.20% 5.30% 6.00%
Bottom Line If you want to buy a home, it's essential to stay informed on home prices and mortgage rates. Experts can provide helpful projections to guide you. Let's connect so you have an expert opinion on our local market. • If you buy now and mortgage rates fall (as projected ): You probably still made a good decision because you got the house before home prices appreciated more. And you can always refinance your home later if rates are lower. • If you buy now and mortgage rates rise : You made a great decision because you bought before both the price of the home, and the mortgage rate went up. But not even the experts can say with absolute certainty where mortgage rates will be next year, or even next month. That’s because there are so many factors that can impact what happens. So, to give you a lens into the various possible outcomes, here’s what you should consider: • If you buy now and mortgage rates don’t change : You made a good move since home prices are projected to grow with time, so at least you beat rising prices.
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