Mortgage Rates Begin to Decrease, Expected to Continue Downward Trend in 2024

As inflation slows and the Federal Reserve plans to lower the federal funds rate, homeowners may consider a home equity line of credit while waiting for further rate decreases.

Mortgage rates, which had been rising, have started to decrease again, with the average 30-year mortgage rate slightly lower than at the start of the month.
Most major forecasts predict mortgage rates to continue to decrease in 2024 as inflation slows and the Federal Reserve begins to lower the federal funds rate.
The Federal Reserve's preferred measure of inflation, the core personal consumption expenditures price index, rose 2.9% year over year in December, the first time it has dropped below 3% since 2021.
Investors expect the Federal Reserve to keep rates steady at its next two meetings in January and March, with a potential 25-point cut in May.
Homeowners looking to leverage their home's value for large purchases, such as home renovations, may find a home equity line of credit (HELOC) to be a good option while waiting for mortgage rates to decrease.