As we move into the fourth quarter of 2024, we are happy to see the much anticipated reduction in mortgage rates.
At the beginning of 2024, mortgage rates stood at 6.62% for a 30-year loan and 5.89% for a 15-year loan. Rates peaked in October 2023 at 7.79% (30-year loan) and 7.03% (15-year loan), the highest since May 2000. By September 26, 2024, rates had dropped to 6.08% and 5.868% respectively; this is slightly below the 2024 predictions from Fannie Mae, Freddie Mac, MBA, and NAR, which averaged 6.23%. This continued decline is promising and we anticipate more movement in the market, especially from sellers who have been waiting for better rates before listing their homes and buying a replacement. Over the past nine months, rates have dropped by more than half of a percentage point, boosting purchasing power by more than 5%. This allows buyers to expand their budgets as a result of decreased borrowing costs.
Several factors influence changes in mortgage rates, and with 2024 being an election year, this adds another layer, as rates often trend downward as the election approaches. We are closely monitoring the mortgage market and new home loan options. Please contact The Durango Team at The Wells Group for more information on mortgages and real estate in Southwest Colorado.
