Current:Home > Contact-usNearly a third of Americans expect mortgage rates to fall in 2024-Angel Dreamer Wealth Society D1 Reviews & Insights
Nearly a third of Americans expect mortgage rates to fall in 2024
View Date:2024-12-23 16:23:58
A growing number of American expect mortgage rates to fall this year.
According to a new survey from Fannie Mae, as of December some 31% of consumers think that borrowing costs for home loans will decline over the next 12 months, a more optimistic outlook than the previous month. The same percentage of respondents expect mortgage rates to rise, while 36% believe they'll hover around their current level.
"Notably, homeowners and higher-income groups reported greater rate optimism than renters," Mark Palim, deputy chief economist at Fannie Mae, said in a statement. "In fact, for the first time in our National Housing Survey's history, more homeowners, on net, believe mortgage rates will go down than go up."
The rate on a conventional 30-year fixed-rate mortgage is 6.62%, down from nearly 8% in November, according to Fannie Mae.
See Managing Your Money for more on how mortgage rates are likely to fare in 2024.
- 3 questions homebuyers should ask themselves now
- Why 2024 could be good for homebuyers
- Why housing inventory may improve this winter
For aspiring homeowners, as well as sellers and those looking to refinance, the big question for 2024 is how low mortgage costs could go. Federal Reserve officials indicated in December they could cut their benchmark rate three times this year. Most real estate experts think rates will remain in the 6% range, according to Realtor.com.
Although mortgage rates don't necessarily mirror the so-called federal funds rate, they tend to track the yield on the 10-year U.S. Treasury note, which is affected by the Fed's monetary policy moves. Investor expectations for future inflation and global demand for Treasurys also influence rates on home loans.
If more Americans are optimistic about falling mortgage rates, they remain distinctly sour on the prospects of buying a home. Only 17% of consumers polled by Fannie Mae think it's a good time to buy a house. As of November, the median price of a home in the U.S. topped $408,000, up 3.6% from the previous year, according to Redfin.
Still, even modestly higher expectations for lower rates could encourage sellers to put their homes on the market, Palm said.
"Homeowners have told us repeatedly of late that high mortgage rates are the top reason why it's both a bad time to buy and sell a home, and so a more positive mortgage rate outlook may incent some to list their homes for sale, helping increase the supply of existing homes in the new year," he said.
Many housing experts also project mortgage rates will dip this year.
"Mortgage rates will almost certainly be much lower this year," Thomas Ryan, a property economist at Capital Economics, said in a January 5 report. "That's likely to bring more supply onto the market, as mortgage rate 'lock-in' unwinds."
- In:
- Mortgage Rates
Alain Sherter covers business and economic affairs for CBSNews.com.
TwitterveryGood! (46367)
Related
- Candidates line up for special elections to replace Virginia senators recently elected to US House
- Judge denies Trump’s request to hold Jack Smith in contempt in federal 2020 election case
- EU Parliament adopts resolution calling for permanent cease-fire in Gaza but Hamas must go
- Barking dog leads to rescue of missing woman off trail in Hawaii
- A wayward sea turtle wound up in the Netherlands. A rescue brought it thousands of miles back home
- British leader Sunak urges Parliament’s upper house to swiftly pass Rwanda migration plan
- Can AI detect skin cancer? FDA authorizes use of device to help doctors identify suspicious moles.
- Blood-oxygen sensors to be removed from Apple Watches as company looks to avoid ban: Reports
- Smithfield agrees to pay $2 million to resolve child labor allegations at Minnesota meat plant
- Over 580,000 beds are recalled after dozens of injuries
Ranking
- Burger King's 'Million Dollar Whopper' finalists: How to try and vote on your favorite
- US bars ex-Guatemala President Alejandro Giammattei from entry 3 days after he left office
- What Pedro Pascal said at the Emmys
- Dua Lipa speaks out on Israel-Hamas war, says ceasefire in Gaza 'has to happen'
- Manhattan rooftop fire sends plumes of dark smoke into skyline
- Justice Department report details the how the shooting at a school in Uvalde, Texas, unfolded
- Texas man kills self after fatally shooting four, including his 8-year-old niece
- Only 19 performers have achieved EGOT status. Here are the stars who have won an Emmy, Grammy, Oscar and Tony.
Recommendation
-
Jon Gruden joins Barstool Sports three years after email scandal with NFL
-
Snoop Dogg's 24-Year-Old Daughter Cori Shares She Suffered a Severe Stroke
-
Florida man sentenced to 5 years in prison for assaulting officers in Jan. 6 Capitol riot
-
Christina Applegate, who has MS, gets standing ovation at Emmys
-
Bears fire offensive coordinator Shane Waldron amid stretch of 23 drives without a TD
-
3 People Arrested in Connection With Murders of Pregnant Teen Savanah Soto and Her Boyfriend
-
'The Last Fire Season' describes what it was like to live through Calif.'s wildfires
-
Indiana bill defining antisemitism advances to state Senate