Mortgage rates have had a significant impact on housing affordability in recent years, but there's reason for optimism. Rates have started to come down, and according to Freddie Mac, they recently hit the lowest point we've seen in 2024 (see graph below).

If you're thinking about buying a home, you might be wondering how much lower prices will go. Here's what you need to know to set your expectations.

Expert Projections for Mortgage Rates

Experts believe the downward trend will continue as long as inflation and the economy keep cooling. But expect some ups and downs as new reports on these factors come out.

Remember, it's important not to let those fluctuations distract you from the bigger picture. Rates are still down about a full percentage point from their recent peak in May.

Most experts think rates in the low 6s are possible in the coming months, but it all depends on the economy and what the Federal Reserve decides to do next."

Many experts are beginning to revise their 2024 mortgage rate forecasts, with a more optimistic outlook for lower rates ahead. Realtor.com, for instance, says:

““Mortgage rates have been revised slightly lower as signals from the economy suggest that it will be appropriate for the Fed to begin to cut its Federal Funds rate in 2024. Our yearly mortgage rate average forecast is down to 6.7%, and we revised our year-end forecast to 6.3% from 6.5%.”
”

— Realtor.com

Know Your Number for Mortgage Rates

So, what does this mean for your plans to move? If you've been waiting for rates to drop, it's already happening. Now, it's up to you to decide when, based on expert projections and your budget, you're ready to jump back in. As Sam Khater, Chief Economist at Freddie Mac, says

““The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”
”

— Freddie Mac

So, what's your next step? Ask yourself: what rate am I waiting for before I’m ready to make a move?

Maybe it's 6.25%, 6.0%, or 5.99%. The rate that feels right for you is personal. Once you know your number, you don't have to keep tracking rates—just be ready when it hits.

Instead, connect with a local real estate professional. They'll keep you updated on the market and help you decide when to make your move. When rates hit your target, they'll let you know right away.