So what’s the story on mortgage rates for 2024? Federal Reserve policymakers are looking at cuts. Rates are primed to retreat further from 2023 highs They anticipate cutting short-term rates three times by the end of next year.
Bond market investors are anticipating that the Fed will begin cutting rates as soon March, and the futures markets are also anticipating two or more rate cuts by May 1.
Yields on 10-year Treasury notes — which are a reliable indicator of where mortgage rates are headed next — were down more than 17 basis points after Wednesday’s Fed meeting, as investors gained additional confidence in spring rate cuts.
While the central bank left rates unchanged in a unanimous vote Wednesday, as expected, Fed policymakers indicated in their summary of economic projections that they anticipate cutting the federal funds rate to 4.6 percent by the end of next year, to 3.6 percent by the end of 2025, and to 2.9 percent by the end of 2026.
We will probably see an upsurge in refinancing, and more buyers returning to the market with lower rates available. Looking forward to a busier market in 2024.