M
ortgage Rates Continue to Fall: Good News for Homeowners and Buyers

    According to Freddie Mac, the average 30-year fixed-rate mortgage rate has dropped to around 6.54%, while the 15-year fixed-rate average is at 5.71%. Experts predict that rates will continue to decline in the coming months, potentially reaching as low as 6% by year-end 2024.

    The Federal Reserve's expected interest rate cut will contribute to lower mortgage rates in 2025. Although rates are influenced by the yield on 10-year Treasury bonds, individual lender and borrower factors also play a role. Despite seeming high, current rates are still below historical averages.

    Homeowners who purchased their homes at higher rates may benefit from refinancing to take advantage of lower rates, potentially saving hundreds of dollars per month. The new normal for mortgage rates is expected to be between 5.8% and 6%, but fluctuations are possible due to economic conditions.

    For homebuyers, falling rates create uncertainty about when to enter the market. However, with rates down from their peak last October, buyers can now find more affordable mortgages and a wider selection of homes. As rates fall, inventory increases, and sellers who delayed listing their homes for sale have started to list them again.

    While home prices remain high, the median home price in Rockland County is expected to continue growing at a slower rate than in recent years. Winter is typically a slower time for home sales, but it's also a good opportunity to shop with fewer buyers and potentially negotiate lower prices. Fannie Mae predicts that home sales could increase by 10% next year due to increased availability and more affordable mortgages.

    This current market presents a good time to buy or list a property, as well as consider refinancing for recent homeowners with higher mortgage rates.