HUD Articles
What Will the Housing Market Look Like Once Mortgage Interest Rates Drop? Here’s What Homebuyers Can Expect
March 11, 2024
Homebuyers who are gearing up to shop the spring housing market might wonder whether the mortgage rate gods will smile in their favor.
They’re right to worry: In October, rates hit a 23-year high of 7.79% for a 30-year fixed loan, according to Freddie Mac.
Since then, rates have come down to 6.94% for the week ending Feb. 29. The Realtor.com® 2024 forecast predicts they might dip further to 6.5% by year’s end.
“According to Freddie Mac, the average 30-year commitment rate is now below 7% for the first time since August 2023,” says Charlie Dougherty, director and senior economist at Wells Fargo. “The drop has occurred largely as a result of encouraging signs that inflation is easing and that the Federal Reserve will be cutting the federal funds target rate sooner rather than later.”
