Mortgage Rates Prediction

In its recent economic and housing outlook for 2024, Fannie Mae’s Economic and Strategic Research (ESR) Group has provided a more optimistic forecast for the housing market. The ESR Group expects mortgage rates to decline in 2024, ending the year below 6%. This prediction is a result of the easing in mortgage rates and the anticipated thawing of the existing home sales market.

This revised forecast is a significant change from the previous year’s projections. The ESR Group’s theme for the 2024 housing market is “Housing Seeks Balance Amid Economic Uncertainty.” The lower rate environment is expected to boost refinance volumes, which are already on the upswing, as evidenced by the recent uptick in Fannie Mae’s Refinance Application-Level Index.

The mortgage rate predictions for 2024 vary among industry experts, with some anticipating rates to be as low as 5.8% by the end of the year. The Federal Reserve’s actions and the path of inflation will play a significant role in determining the actual mortgage rates.

The housing market’s trend towards stability and affordability in 2024 is encouraging for both homebuyers and homeowners. As mortgage rates trend lower, it may open doors for more people to achieve their homeownership dreams.

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