Could mortgage rates fall further in 2024?

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Are experts predicting cooling in mortgage rates?

Since the Federal Reserve started to hike interest rates, mortgage rates have spiked. In fact, in the past two years of rate hikes, mortgages have increased more than they have in the previous 20 years. However, the Fed has sounded more dove-ish, and there are predictions that include multiple rate cuts may be coming in 2024.

Mortgage rates have cooled noticeably since November, but is there more cooling to come? CBS News spoke with a few experts to get their take on what the coming year has in store for mortgage rates.

When asked for a prediction for 2024, Dave Forehand, the owner of Forehand Realty, stated, “Regarding the volatile future of mortgage rates, there are several indicators that suggest a fall to 6% in 2024 is the most realistic prediction. This projection is based on current trends in inflation as well as the Federal Reserve’s decision to hold current rates.”

The team at CBS News asked Dan Green, the CEO at, about indicators for a further rate cool off, who said, “If you want to play smart and figure out when mortgage rates might dip, keep an eye on discount points. Those points can be your early heads-up for next year’s rates. Once lenders start cutting down on the points they charge buyers, that’s your sign that rates are on the way down.

How are mortgage rates doing?*

The national average for a 30-year, fixed rate mortgage rate was unchanged yesterday, and stayed at 6.64%. The national average for a 15-year, fixed-rate mortgage rate was down 0.08% to 6.05%. The market is essentially in ‘holiday trade mode’, and it would take an important event or announcement to get the market to move up or down.

Are home sales on the rise?

A recent report from the National Association of Realtors showed that the sales of single-family homes, townhomes, condos, and co-ops rose 0.8% month-over-month in November 2023. This occurred despite a 4% increase in home prices year-over-year.

The two regions that showed the biggest increases were the South region and Midwest region. The South showed a 4.7% increase in sales month-over-month, and the Midwest region was up 1.1% month-over-month.

When asked what could slow the rise of home prices, NAR chief economist, Lawrence Yun, said, “Only a dramatic rise in supply will dampen price appreciation.”

The good news was that the same report showed a 0.9% increase in home inventory when comparing November 2023 to November 2022.

* National average rates accurate as of 12/20/23 from and are not advertised rates from Guaranteed Rate.

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