Forecast: Mortgage Rates May Drop to 5.8% by Year-End

January 12, 2025 - 21:19

Sean McPeak, a licensed real estate agent and team lead, has shared his insights on the current housing market, predicting a potential decrease in mortgage rates. He anticipates that the 30-year fixed mortgage rate could fall to around 5.8% by the end of the year, contingent on the Federal Reserve's ongoing interest rate cuts and effective market risk management.

According to McPeak, the market is beginning to show "better conditions for buyers," with price reductions noted in several states and an uptick in inventory, particularly in urban and mid-country areas. However, he points out that cities like New York are experiencing unique challenges. High labor costs and stringent regulations have led to a decrease in supply, which helps stabilize prices.

For those looking to purchase a home, McPeak advises focusing on properties that have been on the market for a while and recommends limiting house tours to six per day to avoid confusion. He also emphasizes the importance of keeping a reference file for preferred listings to streamline the decision-making process.