Interest Rates Start 2024 at Seven-Month Low for U.S. Home Loans

The interest rate on United States home loans ended 2023 with two consecutive months of weekly declines.

The present rates on the most common home loans are at 7-month lows heading all of the way back to May of 2023.

With interest rates on 30-year fixed rates approaching 6.5%, the most common home loan interest rate has declined consistently since it’s two decade high in October. The two-month decline was 1.18%.

During the pandemic, interest rates had declined to less than 3% and helped spur home price increases in the nation’s most populated suburbs that had not been seen in decades.

The Federal Reserve ended 2023 making it clear that it was not looking to raise rates in 2024 after relentless rate hikes the past two years.

The market is counting on rate cuts as early as this month helping to rally the stock market and heighten expectations on a loosening of inventory in the housing market.

Still, few if any analysts are expecting interest rates to get back to pandemic lows.