Experts Predict Continued High Rates Amidst Economic Uncertainty

Mortgage Rates to Remain Elevated in 2024

Experts Predict Continued High Rates Amidst Economic Uncertainty

Key Takeaways:

* WEB NAR forecasts a 69% average 30-year fixed mortgage rate in its latest quarterly forecast. * Freddie Mac economists anticipate rates staying above 65% through the end of 2024. * As of July 24, the average 30-year fixed rate stood at 69%, according to Bankrate's latest survey.

Interest rates on 30-year fixed mortgages are expected to remain elevated in 2024, according to leading economic experts. In its most recent quarterly forecast published in June, the National Association of Realtors (NAR) projects an average rate of 69% for the year, an increase from its previous forecast of 67%.

Freddie Mac economists also anticipate continued high rates, with their July Economic Outlook predicting mortgage rates to stay above 65% throughout the remainder of 2024. The average 30-year fixed rate stood at 69% as of July 24, according to Bankrate's national survey of large lenders, down slightly from the peak of 7% reached in early June.

The high mortgage rates of 2023 and 2024 are a result of several factors, including a surge in inflation, rising interest rates set by the Federal Reserve, and a decrease in the supply of available homes for sale. Inflation has been propelled by significant increases in energy, food, and housing costs, and the Federal Reserve has raised interest rates in an effort to curb the escalating prices.