When Will Mortgage Rates Go Down?

Since late 2022, mortgage rates have sharply risen from 6% to nearly 8% by fall 2023, marking the highest in over two decades. This increase, coupled with rising home prices, has significantly raised monthly mortgage payments. Many potential buyers are sidelined, while existing homeowners with lower rates are hesitant to sell. The rates are influenced by inflation, prompting the Federal Reserve to maintain higher interest rates. Experts suggest rates may decrease toward the end of the year if inflation eases, but predictions indicate any drop will be gradual, not dramatic like during the COVID-19 pandemic. Therefore, waiting for significantly lower rates may not be practical, as housing market conditions could offset potential savings.

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