Could mortgage rates dip below 6% in 2024?
The team at CBS News spoke to several mortgage experts to better understand where rates could be by the end of the year.
The question posed to everyone was, ‘Will mortgage rates drop below 6% in 2024?’ The experts surveyed offered three possible scenarios.
Melissa Cohn, a regional VP at William Raveis Mortgage, was confident that rates would hit 6% at some point. She stated, “Mortgage rates will go down in 2024. How much and when depends on the economy and inflation. I believe that we will see rates trending to 6% in the summer, perhaps not until late summer. After that, I believe that rates will drop below 6% and stay below 6% for the year.”
Shannon Feick, the co-owner and co-founder at ASAP Properties LLC, wasn’t quite as bold. Feick said she’s “confident that the relatively strong economy will likely prevent rates from falling below 6% in 2024, but with inflation cooling, mortgage rates will fall slightly from their current levels.”
However, Sam Sharp, an executive VP of mortgage lending at Guaranteed Rate, believes we’ll stay in the mid-6’s for most of 2024. Sharp said, “I think rates will stay flat on average this year, meaning that they will stay in the mid-6s, which is where we dropped to at the end of the year, going into 2024.”
Where are mortgage rates at?
The national average for a 30-year, fixed rate mortgage rate dropped 0.08% to 6.96%* on Tuesday. This dip comes after a spike above 7.00% on Monday.
The reasoning for the dip this time? A rally in 10-year treasuries was the reason for the change in mortgage rates, but it’s unclear to market watchers as to what spurred the rally. Experts will hope to see continued strength in today’s 10-year treasury auction.
Is it a good idea to sell a home in the winter?
Does it make sense to sell a home before the Spring? According to a recent article from Realtor.com, it’s perfectly acceptable to list a home in the winter if you need to, especially in the current market.
First, if you have personal reasons to sell, put your home on the market. There’s no sense to try to time the market if it’s going to cost you.
Second, inventory is still lower than required to meet demand, and homes are still moving off the market.
Also, the Spring homebuying season is also right around the corner, but early birds will want to get into the market before the rush.
Cedric Stewart of Entourage RG of Keller Williams in the Washington, DC area, said, “In June, you may get more offers, but there may be four or five other homes that folks are looking at that are similar to yours. You may not be the belle of the ball. You may have to make some improvements to be the shining star. Whereas people that need to move in January, you’re probably the only game in town. And so they have to deal with you. Because the reality is, the people who need to move right now, need to move right now.”
* National average rates accurate as of 2/6/24 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
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