Are mortgage rates finally on the downturn? Here's what buyers need to know

Many homebuyers — already stretched thin by high home prices — have been waiting eagerly for mortgage rates to fall.

And it appears that relief might be on the way. In the past six weeks, mortgage rates have dropped at least a full percentage point from the record highs seen in the fall of last year.

“For buyers, there is a lot of uncertainty about whether or not rates have peaked or if rates will go down any more,” said Andre Barrett, team lead with The Barrett Group LLC in Tamarac, Floridad.

Are mortgage rates trending on the downturn and will buyers finally get a breather?

What is happening with mortgage rates?

Numbers from Freddie Mac show that the average rate for a 30-year-fixed mortgage is about 6.09%, and the average rate of a 15-year fixed mortgage is about 5.14%, signaling a downward trend experts believe will continue.

“If you follow the trend, it’s kind of like it hobbled up and down, but in an overall downward trend,” said J.C. de Ona, Centennial Bank Southeast Florida division president. “It’s a positive from an affordability standpoint in your mortgage. It gives you more buying power.”

Where mortgage rates ultimately end up remains to be seen. Some experts believe they will stabilize around 5%. A forecast from the Mortgage Bankers Association predicts that mortgage rates should hit around 5.4% by the third quarter, and 5.2% by the end of the year for an average fixed 30-year mortgage.

Mortgage rates have been trending downward as signs emerge that inflation is starting to get under control.

“Inflation has gotten better every month for the past few months,” said Ryan Paton, president of Capitol Lending Group in Coconut Creek, Florida. “Inflation numbers have gone down and rates have gone down.”

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