Mortgage interest rates dropped to record lows in 2021, but then shot over 7% in 2022. Should buyers wait for mortgage rates to go down before making an offer?
Are interest rates going to go down?
In short, yes! Many hopeful buyers paused their purchasing plans due to the spike in interest rates. Fortunately, as inflation is dropping, so will interest rates on mortgage loans. Experts expect interest rates to continue to drop in 2024.
Should I wait for interest rates to go down to 3%?
Unfortunately, a return to all-time low interest rates isn’t anywhere in the near future. Greg McBride, Chief Financial Analyst at Bankrate says,
“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.“
However, even a small drop in mortgage rates can positively impact your budget and buying power.