Homebuyers who are looking to shop during the spring housing market might wonder if rates will be higher or lower.
In October 2023 rates hit a 23-year high of 7.79% for a 30-year fixed mortgage, since then rates have come down to the high 6% range. Realtor.com 2024 forecast predicts they might go down to 6.5% by the end of the 2024.

Does this mean buyers can look forward to lower housing payments? If so, how much lower?

We expect mortgage rates will continue to gradually decline over the course of the next few years alongside easing monetary policy. Buyers shouldn’t expect a rapid overnight change in rates.

Lower mortgage rates will improve affordability because they can increase buyer purchasing power.

Homebuyers can also expect more competition, as rates come down this will likely bring more buyers into the market, having the potential to drive home prices even higher, as buyers compete for a limited number of homes for sale.

Lower financing costs will likely boost demand by pulling affordability crunched buyers off the sidelines. For every 1% drop-in rate, there are 5 million more households that qualify for homeownership.

The best thing to do in this current market is to get yourself pre-approved, have your credit and current income evaluated so you are ready to go when you find that perfect house.