The Impact of Falling Mortgage Rates: Is Now the Time to Make Your Move?

Over the past couple of years, mortgage rates have had a significant impact on housing affordability, making it more challenging for many buyers. But there’s hope on the horizon—rates have started to come down, recently hitting the lowest point we’ve seen in 2024, according to Freddie Mac.

This trend may have you wondering: how much lower could rates go? Here’s what you need to know.

What the Experts Are Saying About Mortgage Rates

Experts predict that the overall downward trend in mortgage rates will likely continue as long as inflation cools and the economy stabilizes. However, expect some volatility as new economic reports are released.

The key takeaway? Don’t let short-term fluctuations distract you from the bigger picture. Rates are down roughly a full percentage point from their peak in May, and many experts believe rates in the low 6% range are possible in the coming months, depending on economic conditions and Federal Reserve actions.

For instance, Realtor.com recently revised its 2024 mortgage rate forecast, saying:

“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%.”

Deciding When to Make Your Move

So, what does this mean for you? If you’ve been holding out for lower rates, know that the decline is already happening. The key is to determine what rate makes you feel comfortable moving forward with your home search.

Maybe it’s 6.25%, 6.0%, or even 5.99%. The exact number is personal, but once you have it in mind, there’s no need to constantly monitor the market yourself.

Instead, connect with a local real estate professional who can keep you informed and guide you on when to take action. They’ll be the first to notify you when rates hit your target.

Bottom Line

If higher mortgage rates have caused you to put your home-buying plans on hold, now is the time to reconsider. Identify the rate that would encourage you to re-enter the market, and then work with a real estate expert who can help you stay on top of market trends and let you know when it’s the right time to make your move.

Ready to discuss your options? Schedule a free consultation with me through my Calendly link, and let's create a strategy that works for you!

Sources: * "What Mortgage Rate Are You Waiting For?” by Keeping Current Matters