Are you considering buying a home in 2024? If so, you may be curious about where mortgage rates are headed. Getting a lower rate on a home loan can save you thousands of dollars in interest costs over the years. So, naturally, many homebuyers want to time their purchase appropriately to get the best rate. Below, we’ve shared some predictions about VA, conventional, and FHA mortgage rates in 2024.
Factors Influencing Mortgage Rates Today
In Dec of 2023, mortgage rates for 30-year fixed conventional loans were sitting at about 7.5%. For FHA loans, mortgage rates were about 6.67%. And for VA loans, rates were averaging at 6.6%. When you look at the rates, we saw two to three years ago, these figures seem high. So what’s changed?
Numerous factors are influencing current home loan rates including:
- Inflation
- The overall state of the economy
- Bond market conditions
- The Fed Funds rate
- Decline in demand for mortgages
Experts are expecting to see mortgage rates start to shift in 2024. So if you’re thinking about buying a home in the next year or two, you’re in luck!
Mortgage Rates in 2024: What Experts Are Saying
Right now, mortgage rate predictions vary from one source to the next, depending on who you ask. Some expect mortgage rates to drop significantly in 2024 while others believe that the decline will be smaller. That being said, most experts agree on one thing: they expect to see rates fall in the coming year.
Fannie Mae predicts that 30-year mortgage rates will end up at about 7.1% by the end of 2024. Other experts are more optimistic. The National Association of Realtors predicts that rates will fall to 6.3% by Q4 of 2024, and the Mortgage Bankers Association is even more optimistic with a prediction of 6.1% by the year’s end.
In the end, none of us know where rates will end up. But the outlook looks positive for prospective homebuyers!
Check Back for Updates
In the coming months, we will probably get a better idea of where VA, conventional, and FHA mortgage rates are headed for the year. In the meantime, stay tuned and keep checking back for updates!
Whether you’re ready to pull the trigger now or are planning on waiting a few months before buying a home, our expert team is ready to assist you, no matter where you’re at on your journey. Call today to get in touch with our staff and speak to an expert about home loan options that are right for you.
