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Will Mortgage Rates Go Down in 2024?

Mortgage interest rates have been rising like crazy over the last few years, thanks to the Federal Reserve (also known as the Fed) repeatedly raising the federal funds rate. But will that trend finally start heading in the other direction in 2024? Yep! In fact, it already has.

Average interest rates across the U.S. for both 30-year and 15-year fixed-rate mortgages began steadily going down in November 2023, and that trend continued into January 2024.1 Rates will likely keep going down throughout the rest of the year, especially since the Fed projected that it’ll lower the federal funds rate three times in 2024.2

So, what does that mean for the housing market? First, it means that buyer demand could increase in 2024 since more people will be able to afford a mortgage. It also means that, if you’re financially ready to buy a house, there’s no reason to wait around—since an increase in demand would also lead to an increase in home prices.

By Rachel Cruze  JAN 24, 2024