{"id":2321738,"date":"2024-08-09T06:38:02","date_gmt":"2024-08-09T10:38:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-expected-to-decline-this-year-providing-some-relief-for-consumers-washington-examiner\/"},"modified":"2024-08-09T06:44:17","modified_gmt":"2024-08-09T10:44:17","slug":"mortgage-rates-expected-to-decline-this-year-providing-some-relief-for-consumers-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-expected-to-decline-this-year-providing-some-relief-for-consumers-washington-examiner\/","title":{"rendered":"Mortgage rates expected to decline this year, providing some relief for consumers &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmortgage-rates-expected-to-decline-this-year-providing-some-relief-for-consumers-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2321738&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Mortgage rates are \u2062projected to decline\u200b throughout the \u200cyear, offering relief to consumers as\u2062 the Federal Reserve begins to \u2064loosen its monetary\u2064 policy. Despite high rates that significantly impacted the \u200dhousing market, experts anticipate a continued downward\u2063 trend\u200d in mortgage interest. Recent economic indicators, \u2063including a surprising jobs report revealing only 114,000\u200c jobs\u200d added\u200c in July, have led investors \u200dto expect more aggressive interest rate cuts from the Fed. Currently, mortgage rates\u200b have\u2062 decreased to 6.55%, the lowest\u200c in 15 months, down from peaks exceeding 8% late last year. Analysts caution that while mortgage rates are likely to \u200cfall, \u200dthey won&#8217;t necessarily\u2064 drop at \u2063the same rate as Fed rate cuts. Nonetheless, the increasing inventory in the real\u2063 estate market and the \u200bpositive \u200dshift in loan application volumes signal an \u200bimproving environment for homebuyers.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-sacff-txt\">Magazine &#8211; Business<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Mortgage rates expected to decline this year, providing some relief for consumers<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1722161\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>Despite broader concerns about the economy, consumers are starting to see <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/mortgage-rates\/\" target=\"_blank\" rel=\"noopener\" title>mortgage rates<\/a> move lower, a trend experts expect to continue this year as the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\/\" target=\"_blank\" rel=\"noopener\" title>Federal Reserve<\/a> begins to loosen <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/monetary-policy\/\" target=\"_blank\" rel=\"noopener\" title>monetary policy<\/a>.<\/p>\n<p>The <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/housing\/\" target=\"_blank\" rel=\"noopener\" title>housing<\/a> market has been upended by the Fed driving interest rates up to their highest level since the dot-com bubble at the turn of the century. That has made the cost of taking out a mortgage and paying for a home much worse. The economic pain has been compounded by housing prices skyrocketing during the COVID-19 pandemic due to explosive demand, so any decline in mortgage rates is welcome news.<\/p>\n<p>Jessica Lautz, the National Association of Realtors&rsquo;s deputy chief economist and vice president of research, told the <em>Washington Examiner<\/em> that the declining mortgage rates are welcome news for consumers and potential homebuyers.<\/p>\n<p>&ldquo;Our forecast does have mortgage rates continuing to fall, especially with the Fed&rsquo;s expectation &mdash; and I would say likely stronger expectation after the jobs data last week &mdash; that the Fed will reduce rates in September, and so as we look to the fall, we could see further reductions,&rdquo; she said.<\/p>\n<p>Fed policy is one of the major factors affecting where mortgage rates go. And perceptions of Fed policy and where it might go changed quickly last week when the latest jobs report was published.<\/p>\n<p>The economy <a href=\"https:\/\/www.washingtonexaminer.com\/news\/3108202\/economy-added-114000-jobs-in-july-the-key-facts-and-figures\/\" target=\"_blank\" rel=\"noopener\" title>added 114,000 jobs<\/a> in July, and the unemployment rate rose to 4.3%, the Bureau of Labor Statistics reported Friday. Investors had expected roughly 176,000 new jobs and for the unemployment rate to hold steady at 4.1%, so the report was a bit of a surprise to economists and caused some alarm bells to start ringing.<\/p>\n<p>Immediately, all eyes turned to the Fed. Investors now think the Fed will cut interest rates by more than anticipated, and if there are more signs the labor market is starting to deteriorate, it could force the Fed&rsquo;s hand to cut more. Mortgage rates tend to move up or down with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economy-grew-3-4-in-fourth-quarter-remaining-strong-despite-higher-interest-rates\/\" title=\"The economy expanded by 3.4% in the fourth quarter, maintaining its strength despite increased interest rates\">interest rate revisions<\/a>, so the recent news has helped mortgage rates move lower.<\/p>\n<p>As of this week, mortgage rates have now fallen to 6.55%, <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3113601\/mortgage-rates-lowest-level-15-months\/\" target=\"_blank\" rel=\"noopener\" title>the lowest level<\/a> in 15 months.<\/p>\n<p>Mortgage rates peaked at over 8% late last year. They began to fall after that when it appeared likely the Fed would cut interest rates but then popped back up because hotter-than-expected inflation reports in the first half of 2024 caused the Fed to push back the timing of its monetary policy pivot.<\/p>\n<p>Mortgage rates hit their highest point of 2024 in April when they clocked in at 7.44% but have largely fallen since then. The recent decline after the disappointing July employment data were released marks about a 0.9% decline from this year&rsquo;s peak.<\/p>\n<p>There has been a noticeably sharp decline since the release of the jobs report.<\/p>\n<p>&ldquo;Long-term bond deals have retraced some of that, but nonetheless, mortgage rates do seem poised to trend lower,&rdquo; Greg McBride, chief financial analyst at Bankrate, told the <em>Washington Examiner<\/em>.<\/p>\n<p>Still, McBride pointed out it is a misnomer to assume mortgage rates will move completely in tandem with the Fed&rsquo;s rate revisions over the coming months.<\/p>\n<p>&ldquo;Certainly, the moderating pace of the economy and continued easing of inflation pressures is good for mortgage rates, but mortgage rates are not going to fall as much as the Fed cuts short-term rates,&rdquo; he said. &ldquo;I think it would be a mistake to presume that the Fed would cut rates three times, and so that automatically means mortgage rates would come down by a like amount.&rdquo;<\/p>\n<p>Lautz emphasized that even now though, consumers are feeling some relief given that less than a year ago, the housing market was plagued by towering mortgage rates of around 8% &mdash; the highest they had been in nearly a quarter of a century. She pointed out that more inventory has been coming into the real estate, good news for homebuyers, as more supply can dampen price pressures in the market.<\/p>\n<p>&ldquo;While we do expect that home prices will continue to rise, it&rsquo;s just not likely going to be at that extreme end that it had been,&rdquo; she said.<\/p>\n<p>Lautz said it will take some time for the housing market to heat up but noted the good news from the Mortgage Bankers Association this week that the market composite index, a measure of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stocks-down-sharply-as-retail-results-disappoint-across-the-board\/\" title=\"Stocks Down Sharply as Retail Results Disappoint Across the Board\">mortgage loan application volume<\/a>, <a href=\"https:\/\/www.mortgagenewsdaily.com\/news\/08072024-mortgage-application-volume\" target=\"_blank\" rel=\"noopener\" title>rose<\/a> 6.9% on a seasonally adjusted basis from the previous week. That shows homebuying activity is starting to trend up while mortgage rates trend down.<\/p>\n<p>&ldquo;So hopefully we will see stronger activity in the home buying market moving forward,&rdquo; she said. &ldquo;But it does take a little bit of time before that happens; it&rsquo;s not an overnight switch.&rdquo;<\/p>\n<p>But how fast will rates fall?<\/p>\n<p>The best thing for the housing market would be a gradual decline in mortgage rates rather than an abrupt decline, according to McBride. That is because if mortgage rates quickly went into a free fall, it could produce a surge in demand that would send home prices soaring and make it more challenging for people to afford a home. That increase might offset some or all of the affordability benefits from <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-affordability-nears-the-worst-on-record\/\" title=\"Housing Affordability Nears the Worst on Record\">lower mortgage rates<\/a>.<\/p>\n<p>&ldquo;By contrast, a more gradual decline in mortgage rates is conducive to an environment where the scales tip in favor of the homebuyer,&rdquo; he said.<\/p>\n<p>What about further down the line?<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/strong><\/p>\n<p>McBride said that while it is quite early to predict how mortgage rates will shake out in 2025 if expectations hold, rates should continue to moderate in the coming months and year.<\/p>\n<p>&ldquo;I think in an environment where the Federal Reserve is in a campaign of reducing short-term interest rates back to a more neutral level that we can hope that mortgage rates will trend lower&nbsp;not only for the balance of 2024 but well into 2025 as well,&rdquo; McBride said.<\/p>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1722161\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1722161\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>**Magazine &#8211; Business**<\/p>\n<p>Mortgage rates are anticipated to decrease this year, offering some relief to consumers. Despite ongoing economic concerns, there is a noticeable decline in mortgage rates, a trend that experts believe will persist as the Federal Reserve starts to ease its monetary policy. The housing market has been significantly impacted by the Fed&#8217;s decision to raise interest rates to their highest levels since the early 2000s, making mortgages and home purchases more expensive. This situation has been exacerbated by soaring housing prices during the COVID-19 pandemic due to high demand, so any reduction in mortgage rates is seen as positive news.<\/p>\n<p>Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, shared with the Washington Examiner that falling mortgage rates are beneficial for consumers and prospective homebuyers. She noted that forecasts indicate continued declines in mortgage rates, especially with expectations from last week&#8217;s job data suggesting potential rate cuts by the Fed in September. As we approach fall, further reductions could be on the horizon.<\/p>\n<p>The Federal Reserve&#8217;s policies play a crucial role in influencing mortgage rate trends. Last week\u2019s jobs report shifted perceptions about Fed policy; it revealed an addition of 114,000 jobs in July while unemployment rose to 4.3%. This was unexpected as economists had predicted around 176,000 new jobs and a stable unemployment rate of 4.1%, raising concerns among investors about potential changes from the Fed.<\/p>\n<p>As a result of this report and growing fears regarding labor market deterioration, investors now anticipate more significant interest rate cuts from the Fed than previously expected\u2014this could lead to further decreases in mortgage rates since they typically fluctuate alongside interest rate adjustments.<\/p>\n<p>Currently, mortgage rates have dropped to 6.55%, marking their lowest point in 15 months after peaking above 8% late last year due to inflation pressures delaying any monetary policy shifts by the Fed earlier this year.<\/p>\n<p>Greg McBride from Bankrate cautioned against assuming that mortgage rates will directly mirror future short-term rate cuts by the Fed; he emphasized that while easing inflation may benefit mortgage costs overall, it doesn&#8217;t guarantee proportional decreases corresponding with each cut made by the central bank.<\/p>\n<p>Lautz highlighted that even though current conditions are improving compared to nearly a year ago when high mortgage rates hovered around 8%, which were unprecedented for almost twenty-five years\u2014there is also an increase in real estate inventory benefiting homebuyers as greater supply can help alleviate price pressures within markets.<\/p>\n<p>While she expects home prices will continue rising over time\u2014they likely won&#8217;t escalate at previous extreme levels\u2014recent data indicates an uptick: according to Mortgage Bankers Association figures released this week showing a seasonally adjusted increase of 6.9% for their market composite index (a measure reflecting volume for loan applications). This suggests growing activity among buyers coinciding with declining borrowing costs\u2014a hopeful sign moving forward although recovery may take time rather than happen overnight.<\/p>\n<p>Looking ahead: McBride believes gradual declines would be most favorable for maintaining affordability without triggering sudden surges leading back into inflated pricing scenarios where lower borrowing costs lose effectiveness against rising property values\u2014a scenario he warns could occur if rapid drops happen too quickly instead of steadily over time allowing balance favoring buyers\u2019 interests instead.<br \/>\nHe also expressed optimism regarding future trends stating if current expectations hold true through next year into early-to-mid-2025 then we might see sustained moderation continuing beyond just this calendar cycle!<\/p>\n","protected":false},"author":2683,"featured_media":2321739,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/Biz.Cover_.081424.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[8891,5182,37637],"class_list":["post-2321738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-consumers","tag-decline","tag-mortgage-rates"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/Biz.Cover_.081424.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2321738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2321738"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2321738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2321739"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2321738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2321738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2321738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}