When the Federal Reserve cut interest rates to near zero in the early stages of the pandemic, mortgage interest rates also plummeted to below 3% for conventional 30-year fixed-rate mortgages. However, mortgage rates then soared in 2022 and continued climbing for much of 2023 due largely to factors like inflation and the Fed’s corresponding rate hikes.

Recently, however, the Fed has kept rates steady and mortgage rates have started to drop. The week ending October 26, 2023, 30-year fixed-rate mortgages averaged 7.79%. Just a few weeks later, for the week ending December 7, 2023, the average fell all the way to 7.03%, according to Freddie Mac.

But will this recent downtrend continue in 2024? Or will rates stay flat or even go back up?

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