Mortgage rates are predicted to go below 5% by a couple different sources. This forecast is based on the Fed dropping interest rates in 2024 and inflation going down more than expected. The current cause of inflation is mostly energy and real estate, which has been dampened in the last year.
The forecast for Fannie Mae is that interest rates will be 6.2% in 2024 but rates as low as 4.75% for a 30 year mortgage is possible. This could make certain VA loans be under 4%.
