The current mortgage interest rates forecast is for rates to remain relatively high, but stay below 7% for most of 2024. Although 30-year rates started May at 7.22%, there’s no reason to expect rates to climb significantly higher. And, if the Federal Reserve begins cutting rates, we should see them move down. They may even edge closer to 6%, according to Jacob Channel, LendingTree’s senior economist.
The Fed hasn’t raised the federal funds rate so far in 2024, and market-watchers don’t expect it to. In fact, the Fed has been clear that it’s looking ahead to potential cuts and may make three before the year ends.
That said, these cuts have been continually pushed back, including at the Fed’s most recent meeting on May 1. Cuts won’t materialize until the Fed feels more comfortable with inflation levels.