30-Year Mortgage Rates Drop to 7.07%

Buyers are advised to be comfortable with their current mortgage as analysts predict further rate drops in 2024.

30-year mortgage rates have dropped to 7.07%, a notable decrease from the 23-year peak of 8.45% seen in October 2023.
Nearly all other loan averages also declined, with the biggest declines seen in the VA 30-year and the 10/6 ARM averages, which each sank 18 basis points.
Despite the decrease, the spread between 30-year new purchase and refi rates has widened to 59 basis points.
84% of buyers who took out mortgages between September 2022 and September 2023 plan to refinance, according to a U.S. News survey.
Analysts expect mortgage rates to continue to dip in 2024, but buyers are advised to be comfortable with their current mortgage in case rates do not drop further.