Mortgage Rates Expected to Fall Below 6% in 2024

Fannie Mae predicts a drop in 30-year mortgage rates and a moderation in home price growth as the Federal Reserve signals potential rate cuts.

Mortgage rates have been holding relatively steady this month after dropping down to an average of 6.43% in December 2023, according to Zillow data.
Mortgage investor Fannie Mae's Economic and Strategic Research Group predicts that 30-year mortgage rates will fall below 6% this year, reaching 5.8% by the fourth quarter of 2024.
Home price growth is expected to moderate, with prices predicted to rise just by 3.2% this year after increasing by 7.1% in 2023.
The Federal Reserve has indicated it could cut rates at least three times this year, which could lead to further drops in mortgage rates.
Investors are pricing in a 50% likelihood of the Fed cutting rates at its March meeting, according to the CME FedWatch Tool.