Mortgage Rate Trends of 2024

We’re getting close to wrapping up another year! As it draws to an end, let’s pause to examine the mortgage rate trends of 2024. Part of making wise financial decisions means knowing where the market is and what its implications are for you.

Current mortgage rates have been hanging at about 6%. Although many find this rate to be more than they had hoped, it is still quite a ways from the highs we experienced just one year ago.

If you’re thinking about home ownership or refinancing, we invite you to speak with the experts at The Harvard State Bank. Our team is available to assist you personally with local expertise to help you through this process.

A Look at Mortgage Trends Today

Compared to the extreme highs reached in 2023, mortgage rates are at a much better place. While this is a wonderful development for prospective homeowners, it must be said that rates are expected to remain steady.

Based on general economic conditions, many analysts believe rates will remain at about 6%, with only minor changes up or down. The decisions of the Federal Reserve influence this, but inflation and the general state of the economy drive mortgage rates just as much.

As a buyer, what does this mean for you? Though it’s not as low as some would have liked, the 6% range offers a chance to get a reasonable mortgage. Those who were anticipating rates to decline drastically might find themselves waiting until 2025—or longer. Now might be the ideal time to act, then, if you have found a house within your means and financial objectives.

Why Aren’t We Seeing A Rapid Drop in Mortgage Rates?

The Federal Reserve recently dropped interest rates, so why haven’t mortgage rates followed suit? There are a few reasons for this.

Although the Fed’s rate influences bank borrowing costs, mortgage rates also rely on inflation and bond market health. During times of uncertainty, investors frequently gravitate toward bonds; when demand for bonds increases, mortgage rates might change.

This confluence of variables has kept mortgage rates above what many would prefer. However, experts do not expect rates to see a dramatic increase; rather, most projections indicate they will stay steady. Some may show a modest decrease heading into 2025—but if rates do decline, they are unlikely to reach the lows of 2020 or 2021.

What This Means Regarding Refinancing in 2024

Refinancing might make more sense to homeowners who had a mortgage taken out during the 2023 peak rate hikes. Assuming your present rate is more than 7%, cutting it to 6% or less can help you save money every month and reduce the overall interest paid over the course of your loan.

Refinancing, however, goes beyond simply cutting monthly payments. Refinancing may also be helpful if you’re thinking about using home equity for renovations, combining other loans, or decreasing the loan term.

But that doesn’t mean it’s right for everyone. If your present rate is less than 6%, it might be best to wait to see whether rates drop even further. You should also take into account the expenses related to refinancing—closing fees, for instance—as they could offset some of the savings.

The mortgage experts at The Harvard State Bank are here to help you evaluate whether refinancing makes sense for your circumstances. We will crunch the numbers and ensure they line up with your goals for financial success.

Why Working with a Community Bank Makes Sense

Selecting a local bank such as The Harvard State Bank has several advantages. Our staff lives and works in the same communities you do, so you can trust that we are familiar with the local real estate market. This can help give you the edge needed to secure the right mortgage.

We also take a personal approach to every loan we handle. Our staff is here to listen to your requirements, whether you are buying your very first home, refinancing, or looking into home equity options. Moreover, we assess your specific circumstances and customize our recommendations to match your financial objectives. We underwrite our loans in-house at The Harvard State Bank, which means we can offer flexibility that’s not typically seen in bigger banks.

We Offer Mortgage Solutions for Every Need

You have unique needs as a homeowner. So, to fit the different circumstances of our clients, we provide an array of mortgage options. Our service has your best interest in mind!

Maybe you prefer a fixed-rate mortgage for better stability or an adjustable-rate mortgage (ARM) for lower interest rates. Whatever the case may be, we can assist you in determining the appropriate match for your needs.

What if you’re looking for a higher-priced home or property beyond the usual lending limits? For that, we specialize in jumbo loans. For this reason—and because we handle our loans at the local level—you can look forward to a personalized approach to your larger financing needs.

What Does the Future Hold for Mortgage Rates?

Most analysts predict steady mortgage rates through the end of 2024, with 2025 potentially seeing a slight dip. These changes are probably going to be slow, however, so waiting for a significant decline might not be the best approach.

If you’re ready to purchase a house right now, focusing on becoming financially prepared might be a more sensible strategy. Here at The Harvard State Bank, we can assist you in weighing all of your options and making the right call for your needs.

Now is a perfect time to look at your options! Maybe you’re interested in refinancing, or you want to buy a home. Perhaps you’d like to talk about home equity loans. No matter your needs, we have a solution for you. Get in touch with Your Friends In Banking today to discuss our loan products and lock in a rate that’s best for you!