top of page

2024 Fannie Mae Rate Forecast: Mortgage Rates to Dip Below 6 Percent

Updated: Feb 4

Fannie Mae's 2024 Rate Forecast: Mortgage Rates to Dip Below 6 Percent

Navigating the highs and lows of mortgage rates can be a daunting task for real estate investors and homebuyers. The 2024 Fannie Mae rate forecast brings good news: it predicts that by year-end 2024, mortgage rates are expected to drop below 6 percent.


This blog will explore how these anticipated lower mortgage rates could reshape the housing market, offering insights into potential impacts on affordability, home sales, and pricing dynamics.


Dive in to understand how this trend might benefit your investment or homeownership goals—let’s unravel the details together.


Key Takeaways


 ✅ Fannie Mae predicts mortgage rates will fall below 6 percent by the end of 2024.


 Home prices are expected to rise by 3.2 percent in 2024, after a bigger increase the previous year.


 Sales of existing homes may go up by 3.1 percent due to lower mortgage rates.


 ✅ Mortgage brokers can help find the best rates and make buying a home less stressful.


  Getting pre-approved for a mortgage shows how much you can borrow and makes the home-buying process faster.



Quick Navigation - Click the link below to jump to that section..






Fannie Mae's Prediction for 2024 Mortgage Rates

Fannie Mae's Prediction for 2024 Mortgage Rates

Fannie Mae sees a brighter future for the housing market, expecting mortgage rates to fall under 6 percent by late 2024. Their economic forecast hinges on the Federal Reserve's shift towards neutral policy.


This change should bring down interest rates across the board, making home loans more affordable. The predicted dip in 30-year fixed-rate mortgages from their October 2023 peak is good news for both buyers and sellers.


Economic signs point to lower rates as the year unfolds. Homebuyers have faced high costs and scarce inventory lately, but easing mortgage rates could revitalize sales of existing homes.


Meanwhile, forecasts suggest single-family home construction will keep growing strong into next year. For those tracking market trends—the mortgage origination activity looks set to rebound after hitting lows in recent times.



Impact on Home Sales and Home Prices


The anticipation of moderating mortgage rates heralds a pivotal shift in the housing landscape, with potential reverberations throughout home sales and property valuations—elements crucial to investors and buyers alike.


This forecast by Fannie Mae sets the stage for nuanced dynamics within the market, where every percentage point change in interest rates can significantly sway affordability and, consequently, demand.


Expected Rise in Home Prices


Fannie Mae's housing market research suggests home prices will climb by 3.2 percent in 2024. This expected growth follows a stronger increase of 7.1 percent in the previous year. A steadier economy and improving existing home sales are driving this forecasted rise.


Investors and buyers should gear up for gradual price appreciation next year. The shift to more moderate home price growth signals a potentially healthier market. Balance may return as new home construction finds stable ground, supporting overall real estate resilience.


As sales of existing homes recover, demand pushes prices upward, albeit at a calmer pace than before. This environment could benefit long-term investors and those looking to purchase a house in a less frenetic market compared to recent years.


Potential Boost in Home Sales


Lower mortgage rates often lead to more people buying homes. Fannie Mae sees rates dropping below 6 percent by the end of 2024. This change could make it easier for buyers to afford a home.


Experts predict this will push up sales of existing homes by 3.1 percent in that year.

Homebuyers seem ready for this shift, eager to take advantage of the softer mortgage markets. With predictions pointing toward a steady growth in home sales, real estate investors are also gearing up for an active year.


Mortgage origination volume is set to reach $1.5 trillion, which is great news for the housing market's health and strength.



Contact Bennett Capital Partners Mortgage

Contact Bennett Capital Partners Mortgage

For those poised to navigate the evolving landscape of mortgage rates, engaging with Bennett Capital Partners Mortgage offers a gateway to tailored financial strategies and expert guidance in Miami's dynamic real estate market.


For personalized mortgage solutions and exceptional service in the vibrant Florida market, reach out to Bennett Capital Partners Mortgage—your trusted partner on your property financing journey.


Phone: Office 800.457.9057 - Direct 305.407.0747

Current Mortgage Rates: See Current Florida Mortgage Rates ➡️



Dive deeper into what Downtown Miami has to offer and how our expert team can assist with your mortgage needs; visit us today!


Get Pre-Approved


Getting pre-approved for a mortgage is a smart move for homebuyers and real estate investors. It gives you a clear picture of what you can afford before you start looking for a new home.


🎯See your buying power: Shows the amount a lender thinks you can borrow.

🎯 Speed up the process: You can move faster when you find the right house.

🎯Gain seller confidence: Sellers take offers more seriously.

🎯 Lockin-rates: If rates go up while you're house hunting, you won't be affected.

🎯 Understand costs: You'll learn about other fees like closing costs upfront.

🎯Better planning: Knowing your budget helps with long-term financial planning.



Conclusion


As 2024 approaches, Fannie Mae's prediction offers a glimmer of hope for the housing market. Mortgage rates under 6 percent could be a game-changer for many aspiring homeowners and real estate investors.


This forecast hints at a more affordable path to purchasing homes, possibly reviving home sales and mortgage activity. The vision of a balanced housing market is on the horizon, suggesting brighter days ahead for buyers and sellers alike.


Keep an eye on those rates – they might just open new doors!



FAQs


What does Fannie Mae expect for mortgage rates in 2024?


Fannie Mae forecasts that we may see a dip, with rates falling below 6 percent by the end of 2024.


Will there be changes in home sales according to Fannie Mae's research?


Yes, indeed—Fannie Mae's economic and strategic research suggests growth in new home sales and a pickup in the pace of existing home sales in 2024.


What is Fannie Mae saying about a recession next year?


Well, their views hint at the possibility of a recession hitting us in 2024, which could affect business prospects across various sectors.


How might cuts impact the housing market in 2024?


If we experience rate cuts in 2024 as expected by some experts, this could bring more balance to the market and help stabilize or even boost home prices.


Are mortgage originations likely to change soon?


According to recent commentary from Fannie Mae analysts, after reaching likely lows recently, both new and existing mortgage origination activity should begin climbing again throughout 2023 into 2024.


Does Fannie Mae provide any outlook on single-family mortgages?


Certainly! The expectation points toward an uptick for total single-family mortgage originations as moderating rates go forward; this will support not just the housing market but also those looking for that classic 30-year fixed-rate mortgage.


What is the Fannie Mae 2024 Rate Forecast?


The Fannie Mae 2024 Rate Forecast predicts that mortgage rates will dip below 6 percent.


What time frame does the forecast cover?


The forecast covers the year 2024, particularly focusing on the fourth quarter of 2024 and year-end 2024.


What are the key points in the Fannie Mae 2024 Rate Forecast?


The key points include the expectation of low mortgage rates, the belief that home sales and mortgage originations likely bottomed, and the anticipated growth in the housing and mortgage market in 2024.


Does the forecast provide an economic outlook for 2024?


Yes, the Fannie Mae 2024 Rate Forecast includes an economic outlook for 2024, offering insights into the expected business prospects, growth, and recession indicators for the year.


What does the forecast suggest about the prospects of home sales and mortgage originations in 2024?


The forecast suggests that the Fannie Mae views the home sales and mortgage originations as likely to show positive growth and improvement in 2024.


Is the forecast's commentary from Fannie Mae or its management?


Yes, the commentary and views presented in the Fannie Mae 2024 Rate Forecast represent the views of Fannie Mae and should not be construed as indicating Fannie Mae or its management's business prospects or expected results.


What does the forecast indicate about the existing home sales market in 2024?


The forecast indicates an optimistic outlook for the existing home sales market, with expectations of improvement and positive trends in 2024.


Are there specific predictions for mortgage rates in 2024 provided in the forecast?


Yes, the forecast predicts that mortgage rates will dip below 6 percent in 2024, influencing the housing and mortgage market dynamics.


What insights does the forecast offer about the housing market research from Fannie Mae in 2024?


The forecast offers insights into the anticipated growth and trends in the housing market researched by Fannie Mae for the year 2024.


When was the forecast released?


The forecast was released in January 2024, providing early predictions and insights into the expected economic and market conditions for the year.






 
Philip Bennett

Philip Bennett


Philip is the owner and principal mortgage broker at Bennett Capital Partners, Business NMLS# 2046828. He earned his degree in Accounting and Finance from Binghamton University and holds a Master's Degree in Finance from NOVA Southeastern University. With over 20 years of experience in the mortgage industry, Philip has been a leader in his field and has personally originated over $2 billion in residential and commercial mortgages.


Learn more about Philip Bennett's background and experience on our Founder's page. Whether you're a first-time homebuyer or a seasoned real estate investor, our team is here to help you achieve your real estate goals. Don't wait any longer; contact us today and let us help you find the right mortgage for your needs.


Sources













15 views

Finance & Mortgage Blog

Mortgage Market Insights: The Latest Updates and Expert Analysis

Latest Posts