Could Mortgage Rates Fall to 4.5% Next Year?
Mortgage rates have more than doubled over the past year, sitting just under 7% for a 30-year fixed-rate loan.
Some say that rates will continue to rise to 8% or more, while several experts think we'll see a big reversal.
The 30-year fixed rate average contract interest rate is currently 6.7%, sharply higher than the 3.3% rate the average home buyer would have qualified for at the beginning of the year.
The Mortgage Bankers Association sees mortgage rates dropping to 4.8% by the start of next year.
And the National Association of Realtors sees rates in the 5% to 5.5% range next year, still significantly lower than where they are now.
While the benchmark federal funds rate isn't directly tied to mortgage rates, the two tend to move in the same general direction over time.
Mortgage rates are at their highest level in years — and expected to keep rising. It is more important than ever to check your rates with multiple lenders to secure the best rate possible.