Mortgage Rates for 2024

Not so fast to the 5s!  Much of the housing industry has been expecting rates to drop below 6%.  In late 2023, many expected it by spring.  Then they changed it to the second half of the year.  Now the economists at Fannie Mae don’t think we’ll get into the 5s at all this year as they’ve revised their guidance to expect mortgage rates at 6.4% by year’s end.  In my monthly market reports, I’ve been doubting rates below 6% for quite a while.  Inflation remains too high for the Fed to bring down the Fed Funds rate, which is not the same as mortgage interest rates, but certainly impacts them.  The Fed itself keeps pushing out when it expects to lower their rate.  Though mortgage rates likely won’t be coming down very much this year, the number of homes sold in the US is expected to increase over last year. 

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