Mortgage interest rates are forecast to fall through 2024 and 2025 as the Fed cuts interest rates in response to a slowing economy and inflation being under control. Is some predictions, the federal funds rate could drop below 3% which would put mortgage rates below 5% potentially. Mortgages being less than 5% could cause another housing price run up with bidding wars.
The estimate for mortgage rates is highly inaccurate as a number of factors control whether or not the economy slows, inflation is under control and there is sufficient luquidity in the housing market for demand of mortgages. Another obvious benefit of lower mortgage rates would be that the people that bought houses at the 6 and 7% rates would be able to refi and substantially lower their payments.
These mortgage rate predictions come from a number of sources including ING, Freddie Mac, Realtor dot com and other sources.
