What Will Mortgage Rates Be In December 2024. One possible scenario is that mortgage rates could start the year flat and then fall sometime in the first half of 2024 around. Mortgage interest rates are unlikely to drop by the same amount that the federal funds rate does.

The latest poll found that 86% expect the fomc to reduce the fed funds rate by 25 basis points, and just 14% predict a larger 50 basis point cut. In the mortgage history books, 2023 will go down as an especially painful year for homebuyers.