Rising mortgage rates have made home buying a challenge over the past few years, but there's good news—rates are starting to drop in 2024. According to Freddie Mac (Federal Home Loan Mortgage Corporation), rates recently hit their lowest point this year, offering hope for potential buyers. So, what can you expect moving forward? 

Mortgage Rate Forecasts for 2024

Experts predict that mortgage rates will continue to trend downward as long as inflation and the economy remain stable. While there may be some fluctuations, the general outlook is positive. Rates are already down nearly a full percentage point from their peak in 2023, Realtor.com is forecasting a year-end rate of around 6.3%. 

How Lower Rates Impact Your Buying Power 

Declining mortgage rates can increase your purchasing power, making homes more affordable. If you’ve been waiting for a more favorable rate to buy a home, now is the time to determine your target rate. Whether it’s 6.25%, 6.0%, or even lower, knowing your ideal rate can help guide your decision-making. My trusted lender, Evergreen Home Loans, is ready to help you achieve your target rate. They offer strategic financial planning and will assist you in getting pre-approved so you can lock in the best rate possible. 

2025 Mortgage Rate Outlook 

Looking ahead, Fannie Mae (Federal National Mortgage Association), Mortgage Bankers Association, National Association of Realtors, and Wells Fargo predict a gradual decline in rates through 2025, driven by easing inflation and economic shifts. Morgan Stanley also expects the Federal Reserve to lower interest rates, which could further reduce mortgage rates 

With mortgage rates on the decline and further decreases forecasted, now might be the perfect time to begin your home-buying journey. If you're ready to explore your options and find the ideal rate for your needs, don’t hesitate to reach out. As your dedicated real estate expert, I’m here to guide you every step of the way and work closely with Evergreen Home Loans to ensure you get the best rate possible. By acting when rates align with your goals, you'll be well-positioned to secure a great deal.