Mortgage Rates Plummet Below 7% as Experts Predict Further Declines

Mortgage rates have fallen below 7% for the first time since August, with experts predicting further declines. The average rate on a 30-year mortgage dropped to 6.95% from 7.03% the previous week, marking the seventh consecutive week of rate decreases. Housing economists believe that near-future rate cuts could bring mortgage rates closer to 6%, which would help stimulate the slow and expensive US housing market. The latest Consumer Price Index (CPI) data showing moderated inflation has fueled predictions of rate cuts in 2024. Experts suggest that rates below 6% could significantly boost housing demand and reduce borrowing costs. The Federal Reserve has signaled lower rates to come, projecting a drop to 4.6% by the end of 2024 if the economy evolves as expected. However, the Fed is currently keeping rates steady at 5.25%-5.50%.