Mortgage Rates Rise Then Plateau As Experts Predict Future Declines

Mortgage rates increased over the past year but have recently stabilized around 7% for 30-year fixed rates.
Higher mortgage rates have deterred potential homebuyers, with purchase applications down 27% year-over-year.
Experts forecast mortgage rates will likely fall to around 5% by late 2024 or early 2025 as inflation continues slowing.
Adjustable rate mortgages have grown more popular as buyers seek lower monthly payments amid rising fixed rates.
Homeowners can utilize home equity products like HELOCs that offer relatively low interest rates compared to other loans.