Mortgage rates, which had climbed to nearly 8% for the widely favored 30-year mortgage loan, have seen a gradual decline in the past few weeks.
Mike Fratantoni, Mortgage Bankers Association (MBA) chief economist and senior vice president, said at the recent MBA Annual Conference in Philadelphia that the Fed will likely cut interest rates three times next year and expected mortgage rates to begin decreasing in 2024 and 2025.
Progress made in curbing inflation has been satisfying, but there is still a lot of work ahead, Fed Chairman Jerome Powell said at a recent International Monetary Fund (IMF) panel.
“Gross domestic product growth in the third quarter was quite strong, but, like most forecasters, we expect growth to moderate in coming quarters,” Powell said in a statement. “Of course, that remains to be seen, and we are attentive to the risk that stronger growth could undermine further progress in restoring balance to the labor market and in bringing inflation down, which could warrant a response from monetary policy.”
At its latest meeting, the central bank retained the short-term policy rate within a range of 5.25% to 5.5%. The Fed has raised interest rates 11 times since March of 2022 in an effort to reduce soaring inflation.
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