When Will Mortgage Rates Go Down?

Many forecasters still expect mortgage rates to decline this year, but for now, stubborn inflation numbers are keeping rates higher than hoped.

Greg McBride, CFA, chief financial analyst for Bankrate stated. “It’ll be difficult for mortgage rates to post a meaningful and sustained pullback until there is greater consensus on what is next with inflation.”

It is expected that Mortgage rates will decline when the Federal Open Market Committee cuts the benchmark interest rate, which is likely to happen in the second half of 2024. But as long as inflation runs hotter than the Fed would like, rates will remain at their current levels.

“Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” says Sam Khater, Freddie Mac’s chief economist

Most economists agree that rates should pull back gradually during each quarter, but forecasters don’t see eye to eye on how far rates will eventually fall: Some believe rates will decline to around 6% by year-end, while others think rates will stay elevated in the mid-6% range. Here’s what experts have to say about their predictions for this year