Fed Chair Jerome Powell recently announced that the central bank will begin cutting the fed funds rate, starting with a 0.50 percentage point reduction. The average 30-year fixed rate has already dropped from 7.79% in October 2023 to 6.20%.
Moody's chief economist Mark Zandi forecasts the 30-year fixed rate will approach 6.0% by the end of 2024 and settle around 5.5% by the end of 2025.