While rates remain elevated, the Fed recently signaled that it will begin to cut rates in 2024, indicating a further downward shift in mortgage rates may soon come.
Bright MLS chief economist Dr. Lisa Sturtevant. “The Federal Reserve has indicated that there will likely be cuts to the short-term federal funds rate in 2024, which will put downward pressure on mortgage rates. Overall, though, rates are expected to remain above 6% throughout [2024].”
William Raveis Mortgage regional vice president Melissa Cohn. “The peak in mortgage rates is behind us, but mortgage rates are not going to decline as fast as everyone would like them to. … The Fed and the markets will now closely analyze all data, and when there is a consistent flow of weaker data, the door will be opened for the Fed to initiate their first rate cut, hopefully, at the end of the second quarter.”
First American deputy chief economist Odeta Kushi. “The ongoing deceleration in inflation, coupled with the Federal Reserve’s recent indication of potential rate cuts [in 2024], suggests an environment supportive of modest declines in mortgage rates. Barring any unforeseen circumstances and resurgence in inflation, lower mortgage rates could be on the horizon, but the journey towards them might be slow and bumpy.”
Hometap Equity Partners head of investor product Dan Burnett. “While softening economic data and indications from the Fed hint that the rate cut cycle could begin sooner than expected, it is worth proceeding with caution as it pertains to mortgage rates. Fed policy will be contingent on continued progress on inflation. If current trends continue, consumers can expect to see Treasury yields decline and mortgage rates come down along with them.”
Zillow chief economist Skylar Olsen. “I’m expecting mortgage rates to be a bit less volatile in 2024 and, data surprises aside, continue to slowly ease down over the course of the year.”
https://www.forbes.com/advisor/mortgages/mortgage-rates/