What’s the mortgage interest rate forecast for September 2024?

Buyers have faced unprecedented challenges in the real estate market since the start of COVID-19. Record low interest rates and low housing supply during the pandemic pushed home prices to record highs, leaving many borrowers facing bidding wars. In the post-pandemic era, surging inflation caused would-be buyers to take another hit, as mortgage rates skyrocketed to their highest level since the year 2000.

Inventory remains low today and mortgage rates remain high, but frustrated buyers may soon see a light at the end of the tunnel. “All indications are the Fed will reduce short-term rates in September, said Fred Bolstad, Head of Retail Home Lending at U.S. Bank.

Many future homeowners are looking toward this important date as the opportunity they’ve been waiting for to access an affordable mortgage. Unfortunately, even if the promised rate cut occurs, some buyers may end up disappointed. Here’s why.

 

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