Mortgage Rates in 2023: A Year of Historic Highs and Dramatic Drops

With the Federal Reserve planning rate cuts in 2024, mortgage rates are expected to ease lower next year.

Mortgage rates in 2023 saw a historic high, peaking in mid-October, but have since fallen dramatically in December.
The spread between 2023's lowest and highest averages was more than 2 percentage points for the major fixed-rate loan types.
The Federal Reserve's expectation of cutting rates in 2024 suggests that mortgage rates will likely ease lower next year.
30-year mortgage rates have fallen back down to about 7% after peaking at 8.45% in October.
The 30-year new purchase rate average is currently holding at 7.06%, just a few basis points higher than its cheapest rate since May.