Mortgage rates forecast
The current mortgage interest rates forecast is for rates to move closer to 6% as we get further into 2024. For now, our senior economist, Jacob Channel, recommends cautious optimism with a dash of realism. Rates fell below 7% in the last couple months of 2023 and have remained there during the first half of March.
Compared to last week, 30-year rates went up by 0.13% and 15-year rates increased by 0.05%.
Here are the U.S. weekly average rates from the Freddie Mac Primary Mortgage Market Survey, as of March 21, 2024:
- 30-year fixed-rate mortgage: 6.87%
- 15-year fixed-rate mortgage: 6.21%
Rates likely won’t go down significantly until the Federal Reserve begins to make cuts. Channel doesn’t expect this to happen until summer, at the earliest. “Regardless of when we see cuts this year,” he notes, “we should expect them to be modest. The Fed probably isn’t going to announce a surprise 100-basis-point cut any time soon unless something is going very wrong in the broader economy.”
How are refinance rates determined?
Refinance rates are based on both factors you can control, like your personal finances, and some you can’t, like the market environment.
To get a lower mortgage refinance rate, you need to get your credit score as high as you can, save for a larger down payment amount, and choose the right type of mortgage loan for you.
Also remember to get offers from three to five lenders before moving forward with a loan offer. This will save you thousands of dollars over time.
Learn more about how to improve your credit score.