Waiting for Mortgage Rates to Change?

The Federal Reserve held steady on interest rates at the conclusion of it's March meeting, and it's sticking with its forecast for three interest rate cuts this year. Sooooooo....if you are waiting to buy or sell a home, you might be curious about the most recent forecasts regarding mortgage rates based on this news.

Check out the predictions below from some experts.

Freddie Mac. With the current stance of monetary policy holding steady, we expect mortgage rates to move sideways, remaining above 6.5% through this quarter and drifting down to about 6% by year's end.

Fannie Mae Housing Forecast. The 30-year fixed rate mortgage will average 6.3% in Q2 2024 and slowly decline over the year, landing at a Q4 average of 5.9%.

National Association of Realtors chief economist Lawrence Yun. "The budget deficit remains high, and the various inflation metrics remain above the comfort level. That means the mortgage rates will likely be in the 6% to 7% range for most of the year."

RSM U.S. real estate senior analyst Crystal Sunbury. "Assuming no significant economic shocks, mortgage rates are likely to continue slowly easing over the next few months, to reach a 6% to 6.5% range by spring of 2024."

Mortgage Bankers Association (MBA). MBA's baseline forecast is for mortgage rates to end 2024 at 6.1% and reach 5.5% at the end of 2025 as Treasury rates decline and the spread narrows.

Bank of America head of retail lending Matt Vernon. "The Fed's likely decision to cut rates in 2024 would be a key factor that could breathe new life into the housing market. However, it's important to note that significant drops in mortgage rates might not happen in the early months of 2024. If any reductions occur, they are likely to be gradual, possibly beginning in the latter part of the year."

We will continue to watch the rates and fingers crossed for improvements through out 2024. In the meantime, you can spend time now preparing your home to go on the market and getting educated on what you want in your next happy home! That way ...when the time is right, you are able to respond quickly to market changes!