Mortgage rates were on a downward course—until they weren’t. After falling in September to a 2024 low of 6.08%, the average rate on the benchmark 30-year mortgage made an about-face, rising to the upper-6% range, landing at 6.84% for the week ending November 21, according to Freddie Mac data. Still, despite the surge, mortgage rates are 1% lower than they were at the same time last year. This likely accounts for the sizable increase in refinance activity compared to a year ago.
Additionally, although the Fed cut its benchmark interest rate by 25 basis points in November and Fed watchers expect another 25-basis point cut following the Fed’s final 2024 meeting in December (one basis point is one one-hundredth of a percentage point), mortgage rates are unlikely to decrease enough in 2024 to make homeownership affordable for many would-be buyers. Here’s what to know.
This post originally appeared at Forbes Advisor.