Mortgage rates have historically moved in tandem with inflation, but recent years have seen a different trend. High inflation typically prompts lenders to increase interest rates, leading borrowers to pay more throughout their loan terms.
However, 2020 and the subsequent year witnessed historic lows in mortgage interest rates. To counter inflation, the Fed has raised short-term interest rates.
Looking ahead to 2024, the National Association of Realtors predicts a decrease in interest rates. 🤞
