30 year and related mortgage rates have settled into a steady range. What does it mean for the future?
The 30 year fixed interest rate just released came in at 7.481%. This continues with a trend of falling and leveling of rates that started after Oct 31. This was consistent across other rates - with Jumbo mortgages reporting at 7.66%, FHA at 7.235%, 15 year fixed at 6.731%. All of these were off the end of October peaks.
Does this falling and leveling of rates give clues to what to expect as we enter into 2024? Mike Simonsen from Altos Research forecasts a 1-2% increase in home pricing at the end of 2023 Vs 2022. He also said as long as rates don’t spike again, 2024 is set up for slight home sales gains over 2023. If rates go up, inventory will build in 2024. If rates fall, inventory will fall again.