Mortgage rates are set to stay elevated
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Anonymous
| If anyone in here could guess better than Fannie Mae, they should be making millions of dollars in the bond markets. |
Anonymous
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I don’t think there was ever any suggestion to the contrary?
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Anonymous
| Elevated? These aren’t elevated. We just returned to normal. |
Anonymous
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Who knows, 6 months ago they were supposed to start declining and decline for the remainder of 2023. Obviously that didn't happen.
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Anonymous
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Mortgage Rate Predictions for 2024
Here is how some experts predict market conditions will affect the average 30-year, fixed-rate mortgage in 2024: National Association of Realtors chief economist Lawrence Yun. “Mortgage rates look to head towards 7% in a few months and into the 6% range by the spring of 2024.” RSM U.S. real estate senior analyst Crystal Sunbury. “Assuming no significant economic shocks, mortgage rates are likely to continue slowly easing over the next few months, to reach a 6% to 6.5% range by spring of 2024.” Mortgage Bankers Association (MBA). MBA’s baseline forecast is for mortgage rates to end 2024 at 6.1% and reach 5.5% at the end of 2025 as Treasury rates decline and the spread narrows. Bank of America head of retail lending Matt Vernon. “The Fed’s likely decision to cut rates in 2024 would be a key factor that could breathe new life into the housing market. However, it’s important to note that significant drops in mortgage rates might not happen in the early months of 2024. If any reductions occur, they are likely to be gradual, possibly beginning in the latter part of the year.” Palisades Group chief investment officer and co-founder Jack Macdowell. “Our best guess is that mortgage rates will remain in the 7% to 7.25% range throughout Q1 2024. This view is based on the idea that inflation is trending positively toward the 2% target and the Federal Reserve is likely done raising interest rates in 2023.” Ally Home president Glenn Brunker. “With the current mortgage rates pricing around 7.5% today, we can expect them to be nearing their top and begin their descent in the first half of 2024.” https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/ |
Anonymous
its higher than its been for 20 years but yes -- over 20 years ago it was considered "normal" |
Anonymous
| Rates will fall when the housing market shows real signs of cooling. Far too many voters (and donors) have an interest in their home values continuing to rise. |
Anonymous
its actually a supply/demand problem. lots of demand and not much supply. I don't see that changing any time soon so prices aren't coming down |
Anonymous
They're just guess too. They stick with the herd and then everyone is surprised and no one gets fired when they're wrong. It's ridiculous to think that anyone can predict what rates will be a year from now. The biggest changes to rates have been from causes that no one saw coming, but we still pretend that it's knowable. Anyone remember when we were definitely going to have a recession this year? Bloomberg economists put the number of 100% https://www.bloomberg.com/news/articles/2022-10-17/forecast-for-us-recession-within-year-hits-100-in-blow-to-biden |
Anonymous
8% is the base. |
Anonymous
Mortgage rates have been ridiculously depressed since the Great Recession. People just thought that was some version of normal. |
Anonymous
| If an agent tells you to "date the rate," you should immediately fire them. You're marrying your rate and should be prepared to never be able to refinance. |
Anonymous
| Great! That means a housing crash is imminent! Can’t wait! |
Anonymous
| I 100% trust a random tweeter named Unusual Whale. |