Hey, so I know things seem a bit muddled right now when it comes to mortgage rates, but here's the scoop: Compared to hitting nearly 8% last fall, mortgage rates have actually been on a downward trend overall.

If you're thinking about getting a new place or putting yours on the market, it's a pretty significant decision. Prices might still fluctuate due to different economic factors such as inflation and responses to the consumer price index (CPI), but try not to get too caught up in the ups and downs. Overall, the general consensus among experts is that prices are expected to keep going down throughout this year.

Hey there! Although we probably won't get those super low rates that homebuyers enjoyed during the pandemic, a couple of experts are predicting that rates could drop below 6% later this year. Dean Baker, a Senior Economist at the Center for Economic Research, thinks so too.

““They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”
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— Dean Baker, Senior Economist, Center for Economic Research

Baker isn't the only one mentioning this could happen. The most recent Fannie Mae forecasts also suggest we might witness a rate drop to less than 6% by the end of this year - check out the green box in the chart below.

The chart here reveals the expected mortgage rates for 2024 as predicted by Fannie Mae. It puts side by side the December projection with the newer forecast released barely a month after. Take a closer peek, and you'll see that the rates are gradually decreasing.

It's pretty typical for experts to update their forecasts as they keep an eye on current market trends and the overall economy. Basically, experts are pretty optimistic that rates will keep dropping as long as inflation slows down.

What This Means for You

Hey there, just a heads up - no one can really predict exactly what's going to happen in the future or when. It's normal for things to go up and down in the short term, so don't stress about those little changes. Keep your eyes on the long-term goals instead!

If you've come across a home you really like in today's competitive market - especially when it can be tough to find one that fits both your budget and your requirements - it might not be wise to wait for interest rates to go below 6%.

Hey there! With interest rates currently lower than they were last autumn, you've got a great chance at hand. Imagine this – even a tiny 0.25% drop in rates can actually enhance your ability to purchase. Pretty neat, right?

Bottom Line

If you were thinking about moving last year but decided to wait for better rates, now might be the right moment to make your move. Let's chat and start making things happen!