Mortgage Rates in 2024

The Federal Reserve began cutting rates in September 2024, reducing the fed funds rate three times (75 bps total) to 4.25–4.5%. However, rising US Treasury yields (driven by fiscal deficit concerns) kept mortgage rates elevated despite the Fed cuts.

CPI fell to 2.9% — the closest to the Fed's 2% target since 2021. Core inflation remained at 3.3%, keeping the Fed cautious about the pace of additional cuts.

Despite Fed rate cuts, mortgage rates ended the year near 6.7% — barely changed from 2023. The "lock-in effect" persisted. Housing starts rose modestly. Home prices continued rising in most markets due to tight supply.