Hold off on expecting a drop in mortgage rates this month. While they’re expected to fall later in 2024, a strong economy is keeping them steady for now.
February’s robust economic data, including job growth and inflation, caused rates to rise. The Federal Reserve’s interest rate hikes throughout 2023 aimed to slow the economy, but inflation hasn’t fallen enough yet for them to consider lowering rates again.
Fed Chair signals no rate cuts in March. Governor Waller’s recent speech emphasized the need to be certain inflation is under control before easing monetary policy. This means mortgage rates likely won’t decrease significantly in March.
Experts predict a gradual decline later this year. Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors all forecast rates to fall to around 6% by the end of 2024. However, this prediction could change if the Fed keeps interest rates high throughout the first half of the year.
Lesson Learned: Don’t wait for immediate rate drops. While February’s prediction of stagnant rates wasn’t entirely accurate, it aimed to manage expectations and encourage action from potential borrowers.
The key takeaway? Mortgage rates will likely hold steady in March due to a strong economy and the Fed’s cautious approach to inflation.
Disclaimer: The information in this article is for educational purposes only and should not be considered financial advice. For the most up-to-date mortgage rate information and personalized guidance, consult with a qualified mortgage professional.
