Are mortgage rates likely to fall in 2024? Here's what Freddie Mac predicts.

It's been a tough year so far for home buyers, who are facing the double whammy of high housing prices and rising loan rates. Unfortunately, the remainder of 2024 may not offer much relief, at least according to economists at mortgage buyer Freddie Mac.

"[W]e expect mortgage rates to remain elevated through most of 2024," Freddie Mac said in a Thursday housing outlook report. "These high interest rates will prompt prospective buyers to readjust their housing expectations, but we anticipate housing demand to remain high due to favorable demographics, particularly in the starter home segment."

Rates on a 30-year fixed mortgage are hovering above 7%, close to their highest point in more than 20 years. With inflation remaining stubbornly high, the Federal Reserve is expected to delay cutting its benchmark rate, and Freddie Mac said it's predicting that the central bank will only make one cut in 2024 — with that occurring toward the end of the year.