30-year fixed U.S. mortgage rates dropped below 7% on Saturday, the first time that it has slipped to this level since August. This mortgage rate has been consistently declining since almost hitting 8% in October. According to data from Freddie Mac, the current rate is 6.95%.
Mortgage rates have been in a constant decline due to rising expectations that the Federal Reserve will implement interest rate cuts during the early stages of next year. Still, most major lenders and realtor organizations have submitted predictions that the 30-year mortgage rate will fall between 6% and 7% in 2024.
While the fall in mortgage rates provides relief to potential homebuyers, this breathing room is somewhat limited given the home prices continued to rise throughout 2023. Redfin’s latest data shows that the median existing home price in the U.S. is $413,500—a 3.4% rise from the same point last year.