Mortgage Rate Forecast | Where Experts Predict They'll Land By End of Year

Mortgage rates continue to be top of mind for both buyers and sellers as they attempt to time their moves within the real estate market this year. Although rates are down from the record highs they reached last year, many potential sellers are still hesitant to forgo the lower rates they enjoy for the current average 30-year fixed rate, which is at 7.53 percent. For buyers, they have to factor in higher rates as they figure out the type of monthly mortgage they can afford.

However, there is good news: mortgage rates are projected to decline as the year progresses due to a variety of factors, including the state of the U.S. economy, the presidential election, and cooling inflation. If experts’ predictions are correct, the rates could dip to mid-6 percent by the end of the year and continue to decrease into 2025. Rates will not reach the historic lows of 2022, but no one should expect them to as that period was an anomaly and not something that either buyers or sellers should attempt to wait for as they make their real estate plans.

Persistent inflation has had a major effect on where interest rates stand. If inflation cools, expect to see relief in the second half of the year. For buyers looking to purchase a home now, expect the rates to stay relatively the same. Although there is a high probability they will decline eventually, that likely won’t be until the end of the year. It’s hard to not try to time the market, but don’t let it stop you from realizing your real estate goals as there are ample avenues to financing a home in today’s market.

Explore the graph and chart below for an illustration of mortgage rate projections and please reach out to trusted lenders at Movement Mortgage to discuss the data or for guidance in securing a home loan.

Article courtesy of Movement Mortgage, originally published to Realogics Sotheby’s International Realty’s company blog.