Newsweek
Aspiring homebuyers waiting for mortgage rates to finally fall are unlikely to see much of a change any time soon, according to experts, as forecasts expect rates to remain well above the 6 percent mark by the end of 2024.
The Federal National Mortgage Association, better known as Fannie Mae, and the National Association of Realtors® (NAR) both expect the average 30-year mortgage rate to modestly lower to 6.7 percent by the end of the year.
Market observers and homebuyers are waiting for the central bank to finally lower its key interest rate, a move that would eventually have the effect of lowering mortgage rates too.
Lawrence Yun, NAR chief economist, told Bankrate that “if the spread between the 10-year Treasury bond yield and the 30-year mortgage rate narrows, then mortgage rates can decline even before the Federal Reserve’s rate cut.”
“But given the uncertain outlook for community and regional banks, the spread is not likely to narrow,” he said.
“The mortgage payment for a typical home today is more than double that of homes purchased before 2020,” Yun wrote in a recent press release shared with Newsweek. “Still, first-time buyers in the market understand the long-term benefits of owning.”
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