Mortgage rates over the next three months are expected to remain relatively high, with limited short-term relief. Here are the key projections:

1. Current Rates and Short-Term Outlook: As of today, 30-year fixed mortgage rates are averaging around 7.22% and are expected to stay above 7% in the near term, potentially inching towards 8% if inflation persists​​. This short-term forecast indicates continued high borrowing costs for potential homebuyers, generally.
2. Factors Influencing Rates: Several factors are contributing to these high rates, including persistent inflation, economic data releases, and Federal Reserve policies. The Fed’s ongoing efforts to combat inflation by maintaining high interest rates are a significant factor keeping mortgage rates elevated​​.
3. Medium-Term Outlook (2024): Looking further into 2024, there is a bit more optimism. Predictions suggest that mortgage rates could dip below 6% by the end of the year as inflation cools and the Federal Reserve potentially eases its monetary policy​ (Fannie Mae)​​ (www.nar.realtor)​. Fannie Mae expects the 30-year fixed rate to end 2024 at about 6.4%, which, while still high, represents a decline from current levels​ (www.nar.realtor)​.
4. Housing Market Impact: These high rates, coupled with low housing supply, have kept home prices high, which in turn has reduced affordability. However, as rates are projected to decrease slightly, this could lead to an increase in home sales and refinancing activities towards the latter part of 2024​ (LendingTree)​​ (Fannie Mae)​.

In summary, while mortgage rates are expected to remain high in the short term, a gradual decline is anticipated throughout 2024, potentially improving the housing market conditions by year-end.

Of note, every mortgage transaction is very specific and not based on general data based on nationwide samples.

Always get quotes from at least three lenders.

Next: How to shop for a home loan.