As we bid farewell to the rollercoaster ride that was 2024, housing professionals and prospective homeowners everywhere can’t help but feel a tinge of disappointment lingering in the air. Hopes were high for a much-anticipated Fed rate-cut cycle that could potentially lead to a drop in mortgage rates. However, a robust economy alongside a cautious Federal Reserve delayed these rate cuts until September, sending mortgage rates on an unexpected upward trajectory.
While the initial anticipation for lower mortgage rates seemed dashed, the bond market managed to outmaneuver the Federal Reserve. Prior to any rate cuts, mortgage rates had already plummeted by nearly two points from their peak in 2023, reaching a staggering 8% in October. Throughout the fall, there were moments when these rates nudged closer to the coveted 6% mark, sparking demand and injecting a temporary boost into the housing industry.
The eagerly awaited drop below 6% seemed within reach until the unexpected turmoil of the election introduced a fresh set of variables that influenced mortgage rates. As the year draws to a close, mortgage rates now hover around 7%, leaving many feeling neither ecstatic nor desolate.
Lead Analyst Logan Mohtashami empathized with the prevailing frustration, likening the bond market’s resistance to a steadfast guard akin to Hodor from Game of Thrones, blocking the much-anticipated sub-6% mortgage market. Another year has passed without reaching this threshold, leaving stakeholders in uncertain territory.
The regular coverage of mortgage rates by the HousingWire newsroom and Mohtashami’s insightful Housing Market Tracker keep industry professionals abreast of the ever-evolving trends. Economic indicators and labor data continued to play a pivotal role in shaping mortgage rates throughout 2024. The year bore resemblance to its predecessor with rates ebbing in response to weak economic data and a corresponding surge during periods of strengthened economic performance.
Looking back on the tumultuous year, here are some of the top mortgage rate stories that underscore the challenges faced by housing professionals in navigating the fluctuating market:
Where do we go from here? As we eagerly await the unfolding of 2025, HousingWire’s 2025 Housing Market Forecast offers valuable insights. Don’t miss the chance to delve deeper into the realm of housing economics at the Housing Economic Summit on Feb. 26, where top industry experts will dissect the nuances of the market landscape.
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