Some Experts Say Mortgage Rates May Fall Below 6% Later This Year

<article class="post-945955 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-945955"><span class="entry-date">February 21, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Some Experts Say Mortgage Rates May Fall Below 6% Later This Year</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Some+Experts+Say+Mortgage+Rates+May+Fall+Below+6%25+Later+This+Year&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fsome-experts-say-mortgage-rates-may-fall-below-6-later-this-year%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Some Experts Say Mortgage Rates May Fall Below 6% Later This Year Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240221-Some-Experts-Say-Mortgage-Rates-May-Fall-Below-6-Later-This-Year.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p><span style="color: black;">There’s a lot of confusion in the market about what’s happening with day-to-day movement in mortgage rates right now, but here’s what you really need to know: </span>compared to the near 8% peak last fall, <a href="https://www.simplifyingthemarket.com/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a> have trended down overall.</p>
<p>And if you’re looking to <a href="https://www.simplifyingthemarket.com/2024/01/24/are-more-homeowners-selling-as-mortgage-rates-come-down/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buy</a> or <a href="https://www.simplifyingthemarket.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">sell a home</a>, this is a big deal. While they’re going to continue to bounce around a bit based on various economic drivers (like inflation and reactions to the consumer price index, or CPI), don’t let the <a href="https://www.simplifyingthemarket.com/2024/02/12/whats-really-happening-with-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">short-term volatility</a> distract you. The experts agree the overarching downward trend <a href="https://www.simplifyingthemarket.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">should continue</a> this year.</p>
<p>While we won’t see the record-low rates homebuyers got during the pandemic, some experts think we should see rates dip below 6% later this year. As Dean Baker, Senior Economist, <em>Center for Economic Research</em>, <a href="https://cepr.net/contrary-to-what-the-washington-post-tells-you-homeownership-rates-for-young-people-are-above-the-pre-pandemic-level/" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“They will almost certainly not fall to pandemic lows, although </em><strong><em>we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.</em></strong><em>”</em></p></blockquote>
<p>And Baker isn’t the only one saying this is a possibility. The latest <em>Fannie Mae</em> projections also indicate we may see a rate below 6% by the end of this year (<em>see the green box in the chart below</em>):</p>
<p> <a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240221/20240221-Mortgage-Rate-Projections.png" rel="noopener noreferrer" target="_blank"><img alt="a screenshot of a graph" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240221/20240221-Mortgage-Rate-Projections.png"/></a></p>
<p></p>
<p>The chart shows mortgage rate projections for 2024 from <em>Fannie Mae</em>. It includes the one that came out in <a href="https://www.fanniemae.com/media/49866/display" rel="noopener noreferrer" target="_blank">December</a>, and compares it to the updated 2024 forecast they released just <a href="https://www.fanniemae.com/media/50096/display" rel="noopener noreferrer" target="_blank">one month</a> later. And if you look closely, you’ll notice the projections are on the way down.</p>
<p>It’s normal for experts to re-forecast as they watch current market trends and the broader economy, but what this shows is experts are feeling confident rates should continue to decline, if inflation cools.</p>
<h4><strong>What This Means for You</strong></h4>
<p>But remember, no one can say for sure what will happen (and by when) – and short-term volatility is to be expected. So, don’t let small fluctuations scare you. Focus on the bigger picture.</p>
<p>If you’ve found a home you love in today’s market – especially where finding a home that meets your budget and your needs can be a challenge – it’s probably not a good idea to try to time the market and wait until rates drop below 6%.</p>
<p>With rates already lower than they were last fall, you have an opportunity in front of you right now. That’s because even a small quarter point dip in rates gives your <a href="https://www.simplifyingthemarket.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">purchasing power</a> a boost.</p>
<h3>Bottom Line</h3>
<p><span style="color: black;">If you wanted to move last year but were holding off hoping rates would fall, now may be the time to act. Connect with a real estate agent to get the ball rolling. </span></p>
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