I have said many times that I will make no predictions and as a general rule there are no guarantees in life, so don’t let anyone lead you to believe that they can make guarantees. Predictions are simply that, predictions. Below are 3 reputable sources on their predictions of interest rate through 2023 and on to 2024. That is why I do say, Keep Calm and Buy a House. The more you wait the more you lose out on growth and no one can predict where this is exactly going.
Nov. 8, 2023
Mortgage rates had previously been forecasted to fall in 2023, but they've stayed higher for longer than expected in response to continued resilience in the U.S. economy, according to some of the nation's leading real estate economists. As of early November, mortgage rates are nearly 8%.
As a baseline scenario, the 30-year fixed mortgage rate is expected to stay above 7% through the remainder of 2023, and it will likely remain above 6% throughout 2024. That's due in part to the Federal Reserve's hawkish monetary policy, with Fed officials reiterating their stance of keeping rates higher for longer in order to bring inflation back to the central bank's 2% annual target.
Nov. 10, 2023
Thanks to a stubbornly resilient economy prompting the Federal Reserve to maintain high interest rates, indirectly propelling mortgage rates skyward, most housing market experts predict mortgage rates will hold above 7% for the rest of 2023—and possibly beyond.
Oct 16, 2023
Fannie Mae's forecast suggests that 30-year mortgage rates will fall into the 6.7% to 7.1% range in 2024, while NAR believes rates will stick closer to 6%. The MBA forecast predicts that 30-year mortgage rates will drop to 6.1% by the end of 2024.
This is a great article to gain a better understanding of where we are, where we came from and where we are going with interest rates.