Mortgage Rates Update: Rates Down for Second Consecutive Week, But Still Above 7%

The average 30-year and 15-year fixed mortgage rates have decreased for the second consecutive week, according to Freddie Mac. Despite this positive trend, the 30-year rate is still hovering over 7%, which may seem high compared to rates in previous years.

Economists are optimistic about further rate decreases throughout the year, with forecasts from Fannie Mae and the Mortgage Bankers Association predicting the average 30-year rate to be at 6.4% by the end of 2024. While some may have hoped for faster drops, the gradual decline is a positive sign for potential homebuyers.

For those considering buying a home, waiting until later in 2024 could result in saving over half a percentage point on mortgage rates. However, it’s important to note that predicting future rates is uncertain. In the meantime, individuals can use this time to save for a down payment and improve their credit score, which can lead to better rates in the future.

If you are ready to buy now and can afford the current rates, it may be worth considering purchasing sooner rather than later. Additionally, refinancing is always an option down the line once rates have dropped significantly.

Overall, while current rates may seem high, it’s important to weigh the pros and cons of different mortgage options and consider your financial situation before making a decision. With rates expected to decrease gradually, potential homebuyers have the opportunity to make informed choices about their home purchase.