Mortgage Rate News (2024)

FAQs

Will mortgage rates ever be 3% again? ›

Lawrence Yun, chief economist at the National Association of Realtors, even told CNBC last year that he doesn't think mortgage rates will reach the 3% range again in his lifetime.

Mortgage rates should continue declining this year as the U.S. economy weakens, inflation cools and the Federal Reserve cuts interest rates. The 30-year fixed mortgage rate is expected to fall to the low-6% range through the end of 2024, potentially dipping into high-5% territory in 2025.

With the likely Fed rate cut on Sept. 18 and more cuts to potentially come, mortgage rates could continue to fall through the end of 2024 and into 2025.

Experts also don't expect any drastic dips in rates — say to 3% or 4%, as experienced during the height of the COVID-19 pandemic. “A significant drop in rates would only happen if the U.S. went into a deep recession,” said Neil Christiansen, a home loan specialist at Churchill Mortgage in Denver, in an email.

While mortgage rates could fall in 2024, it's not a given. If you're risk-averse and want to avoid any chance of your mortgage rate increasing, locking in your mortgage rate today may be the best option. But if you think rates will drop before you make an offer, choosing not to have a rate lock could make more sense.

At the start of 2025, a federal funds rate target range of 4.25%–4.5%, or one full percentage point lower than the current range. At the end of 2025, a federal funds rate target range of 2.75%–3.00%, or 2.5 percentage points lower than the current range.

Monetary Policy Summary, August 2024

At its meeting ending on 31 July 2024, the MPC voted by a majority of 5–4 to reduce Bank Rate by 0.25 percentage points, to 5%. Four members preferred to maintain Bank Rate at 5.25%.

The Lowest Mortgage Rate Ever Recorded

The lowest weekly average mortgage rate for the conventional 30-year, fixed-rate mortgage was recorded at 2.65% in January of 2021.

What bank is offering the lowest mortgage rates? ›

Yes, negotiate your mortgage rate

Mortgage interest rates are not set in stone, and research confirms that those who get multiple quotes often secure lower rates. A surprising number of home buyers and homeowners, however, forego negotiations and settle with the very first lender they encounter.

In the fall of 1981, the average 30-year mortgage rate reached an all-time high of 18.63%. We'll examine mortgage trends for the past five decades and look ahead to see what borrowers can expect in 2024.

A 4.75% mortgage rate is currently seen as a good interest rate. This rate is below the average for both 15-year fixed loans and 30-year mortgages. At the end of 2022, good mortgage rates for 15-year fixed loans were around 5%, while rates for 30-year mortgages were in the 6% range.

In January 2025, I predict the average 30-year mortgage rate will be about 6%, not too far below where it is right now. By December 2025, I predict the average 30-year mortgage rate will fall to approximately 5.1%, which would make a big difference in the cost of homeownership.

CPI inflation to fall further than most expect in 2025 and prompt BoE to cut interest rates to 3.00% by early 2026.

Leading forecasts suggest that by 2026, the average mortgage rate could drop to around 5.0% according to various sources, including the predictions shared by financial analysts on platforms such as Morningstar. They suggest a gradual decline will continue, culminating in rates around 4.5% to 4.25% by 2027.

Will mortgage rates come down in the next 5 years? Lord: “For the rest of 2023, I predict rates for the 30-year fixed-rate mortgage will average 7.3%, followed by 6.1% in 2024, 5.5% in 2025, 5% in 2026, 4.5% in 2027, and 4.5% in 2028.