Mortgage Market Update: Rates Remain High as 2024 Progresses

As of July 24, 2024, the mortgage market continues to experience elevated interest rates, presenting challenges for potential homebuyers and refinancers alike. The average 30-year fixed mortgage rate currently stands at 6.87%, while the 15-year fixed mortgage rate averages 6.32%. These figures translate to significant monthly payments for borrowers, with 30-year mortgages requiring approximately $684 per $100,000 borrowed, and 15-year mortgages demanding about $871 per $100,000 borrowed.

The national averages paint a similar picture, with the 15-year fixed mortgage rate at 6.31% and the 30-year fixed rate at 6.97%. These elevated rates reflect the broader economic conditions, including ongoing inflationary pressures and the Federal Reserve’s monetary policy decisions. As a result, potential homebuyers are facing increased borrowing costs compared to previous years, impacting affordability and purchasing power in the housing market.

Local Market Spotlight: Spokane Valley, WA

In Spokane Valley, Washington, the mortgage rate landscape mirrors the national trend with some variations. Current rates in the area are 6.800% for a 30-year fixed mortgage, 5.832% for a 15-year fixed mortgage, and 7.639% for a 5-year adjustable-rate mortgage (ARM). These local rates, while slightly different from the national averages, still represent a challenging environment for homebuyers in the region.

The impact of these rates is particularly significant when considering the local housing market. As of November 2023, the median home price in Spokane County stood at $407,400. This combination of high home prices and elevated mortgage rates underscores the affordability challenges facing potential homebuyers in the area, necessitating careful financial planning and consideration before entering the market.

Future Outlook and Expert Predictions

Despite the current high-rate environment, there is some optimism for the future. The National Association of Realtors (NAR) forecasts that 30-year fixed home mortgage rates will decrease to an average of 6.3% by the end of 2024. This prediction aligns with the broader expert consensus, which suggests that mortgage rates will continue to ease, albeit not as sharply as initially anticipated.

Experts predict that rates are likely to hover in the range of 6.25% to 6.4% by the end of 2024. While this represents a modest decline from current levels, it still indicates a higher rate environment compared to historical norms. Potential homebuyers and homeowners considering refinancing should keep these projections in mind when making financial decisions, understanding that while some relief may be on the horizon, significantly lower rates are not expected in the immediate future.