Some Experts Say Mortgage Rates May Fall Below 6% Later This Year

Are you confused about what's happening with day-to-day movement in Kansas City mortgage rates? Here's what you need to know: national mortgage rates have trended down overall compared to the near 8% peak last fall.

This market trend is significant for those looking to buy or sell a home in the Kansas City area. While mortgage rates will continue to vary slightly based on different economic drivers (like inflation and reactions to the consumer price index, or CPI), it's essential not to focus on this short-term volatility. Housing market experts agree that the overarching downward trend should continue throughout 2024.

It won't be the record-low rates Kansas City homebuyers saw during the pandemic, but some housing market experts predict rates will drop below 6% later this year. As Dean Baker, Senior Economist, Center for Economic Research, says:

"They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards."

Baker isn't the only one saying this decline is a possibility. The latest Fannie Mae projections also forecast mortgage rates below 6% by the end of this year (see the green box in the chart below):

 

 Fannie Mae's mortgage rate projections for 2024, seen on the chart above, compare data from December to the updated 2024 forecast they released just one month later. This comparison shows that projections are coming down.

You can expect a re-forecast as experts continue to watch local housing market trends and the broader economy, but current data projections show confidence in the continued decline of KC mortgage rates if inflation cools.

What Does This Mean for You?

When it comes to mortgage rate trends, short-term volatility is expected. No one can confidently say what will happen (and by when), so don't let small fluctuations scare you. Focus on the bigger picture.

Finding a home that meets both your budget and needs can be challenging. Have you found a home you love in the Kansas City area? Trying to time the market and wait until rates drop below 6% is risky.

With Kansas City mortgage rates already lower than last fall, you have an opportunity right now. Even a small quarter-point dip in rates gives your purchasing power a boost!

Bottom Line

Were you looking to move last year but delayed in the hope that Kansas City mortgage rates would fall? The Just Say Home real estate agents can help you assess your budget and goals to see how they align with the current KC housing market. Don't wait - now may be the perfect time to act!

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