How low will rates go in 2024?

These predictions are important for individuals considering purchasing a home, as they can help them plan their finances and make informed decisions about the timing of their purchase. It is crucial to stay up-to-date with the latest housing and interest rate forecasts to make the best decisions for your financial future.

The National Association of Home Builders (NAHB) has released its latest housing and interest rate forecast, providing valuable insights into the future of the housing market. According to the forecast, mortgage rates are projected to remain elevated in the coming years.

Specifically, NAHB predicts that mortgage rates will average 6.64% in 2024. This represents a significant increase from the current levels, indicating that borrowers should expect to pay more for their mortgages in the near future.

However, the forecast also suggests that mortgage rates will start to decline in 2025. NAHB expects rates to fall to an average of 5.86% that year, providing some relief to homebuyers who have been grappling with high interest rates.

The trend of declining mortgage rates is expected to continue into 2026. NAHB predicts that rates will decrease further to an annual average of 5.49%, signaling a more favorable lending environment for potential homebuyers.