Mortgage rates have leveled off in recent weeks, showing little sign of significant decline despite steady hopes from homebuyers for more affordability.
The Federal Reserve could begin cutting rates later this year, but meaningful relief is unlikely until well into 2025, depending on inflation progress.
Even with potential rate cuts, elevated home prices and tight inventory will keep affordability strained, as lower borrowing costs may quickly attract more buyers.
Buyers can stay competitive by considering condos, fixer-uppers, shorter loan terms, or rate buydowns while waiting for more favorable long-term conditions.