And, while the Fed does not directly dictate"The Fed is likely to increase rates by 25 basis points in November, which will likely keep upward pressure on mortgage rates," says Eric Fox, chief economist at Veros."I think our best chance of a rate drop is late 2024 or into 2025 — whenever the economy gets bad enough that the Fed needs to lower rates to energize it," says Mason Whitehead, a home loan specialist at Churchill Mortgage.
Keep in mind, however, that rates might not get back to their pandemic lows. While rates might seem high now, they look more reasonable from a historical perspective. "Those borrowers who have been most successful don't pay attention to short-term increases and decreases in mortgage interest rates. Rather, it is best to focus on the long-term, purchase what you can afford today, participate in home equity growth, and refinance whenever possible in the future," says Fox.