Mortgage Interest Rates Today, Jan. 9, 2024

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Mortgage rates are down dramatically from their fall 2023 peak, though they have inched up over the past few days in response to hotter-than-expected labor market data. 

But overall, the economy has been showing signs of cooling, which is good news for mortgage rates. In response to slowing inflation, 30-year mortgage rates have dropped astonishingly fast, falling more than a full percentage point in less than three months.

And most experts believe that mortgage rates will go down even more in 2024.

Lower mortgage rates have many hopeful homebuyers feeling better about their prospects in 2024. According to Fannie Mae’s December National Housing Survey, the number of consumers who expect mortgage rates to go down in the next 12 months went up to 31%, a survey high.

However, as rates fall, home prices are likely to rise, according to the latest housing market predictions for 2024. So though buyers may see an increase in affordability when it comes to their mortgages, homes are expected to continue getting more expensive.

“Like many others, even if rates fall further, we continue to believe that affordability will be tempered in part by elevated home prices, especially for first-time homebuyers, and we expect the pace of home sales improvement to be modest in 2024,” Mark Palim, vice president and deputy chief economist at Fannie Mae, said in a press release.

First-timers who are hoping to buy in 2024 should focus on finding lower mortgage rates and taking advantage of low-income or first-time homebuyer loans that can help make homeownership more affordable in the face of higher home prices. 

Current Mortgage Rates