The biggest mortgage interest stories of 2024
2024 was a disappointing year for those looking forward to a cycle of Fed rate cuts and the impact on mortgage rates. A strong economy (and a skittish Fed) resulted in interest rate cuts through September – and then mortgage rates went up!
However, the bond market led the way Federal Reserve and before the first cut, mortgage rates had already fallen nearly two points from their 2023 highs, when they reached 8% in October. Mortgage rates moved closer to the magic 6% level at several points this fall, boosting demand and giving the sector a much-needed but short-lived boost.
Unfortunately, the election brought in a whole new set of variables that impacted mortgage rates, and we are now ending the year with mortgage rates around 7%. Terrible? No. Good? Also no.
“I understand the frustration about mortgage rates in 2024,” said lead analyst Logan Mohtashami. “Many people believed the mortgage market would fall below 6%, but the bond market held at a key level, as did Hodor from Game of Thrones held the door. As a result, another year has passed without mortgage rates falling below 6%.”
The HousingWire newsroom writes about mortgage rates several times a week (you can find all these stories here) and we publish Mohtashami’s Housing Market Tracker every Saturday with weekly updates on the 10-year interest rate/mortgage rate outlook, housing inventory, sales, new listings, current contracts and more.
“Mortgage rates this year remained within the range I expected,” Mohtashami said. “As economic and labor data weakened, bond yields and mortgage rates fell. Conversely, when economic and labor data improved, interest rates rose again. What we saw in 2024 was similar to 2023: mortgage rates fall as economic data weakens. If we want these interest rates to remain low for an extended period of time, the economy must continue to underperform or mortgage spreads must return to normal.”
Below are some of our top mortgage rate stories, starting in September, that illustrate what housing professionals have experienced this year:
Where will mortgage rates go in 2025? View HousingWire’s 2025 housing market forecast and sign up for the Economic top in the field of housing on February 26, where the very best housing economists will break it all down.
