Home Mortgage rates decline to 5.75%
Thanks to higher mortgage rates, 2023 was the least affordable homebuying year in at least
11 years, according to data from real estate companies.
But rates are already significantly lower since hitting 8% in October. Now, the average
rate for a 30-year, fixed-rate mortgage is 6.9%, up from 4.4% when the Fed
started raising rates in March of 2022 and 3.27% at the end of 2021, according
McBride also expects mortgage rates to continue to ease in
2024 but not return to their pandemic-era lows. “Mortgage rates will spend the
bulk of the year in the 6% range,” he said, “with movement below 6% confined to
the second half of the year.” Estimated to around 5.75 % . This is a hard thing
to predict and this should only be taken as an estimate.
Should you wait to buy? It seems when the rates go lower there may be more home buyers entering
the buyer pool, thus raising home prices since demand usually has the biggest
impact on home pricing.
Currently rates are around 6.5 - 7%, however if you
consider an adjustable rate home mortgage carefully you can do much much better and be locked
in for a long period of time. Your loan officer
can give you the pros and cons of an adjustable rate mortgage and if it fits
your home buying needs.
Karen Martin, Realtor Safe Harbor Realty Westport, MA