Interest Rates and the Housing Market in 2024

Interest Rates & the Housing Market 2024

As I have done for many years, I am sending the “expert’s” prediction for interest rates and the housing market for 2024. But before I start, I want to say that I am not sad to see 2023 in the rearview mirror. At least as far as business goes, 2023 was a challenge. The big jump in mortgage rates combined with low inventory kept many potential buyers on the sidelines. On the other hand, I had more time to be a grandmother and travel, so I am not complaining!

Interest Rates

30-year fixed rates are predicted to be as low as 6 to 6.5% at some point in 2024. That is not wonderful but much better than 7.875%, which I quoted to some clients in November. This will help with housing affordability.

Housing Market

It is predicted that more houses will come on the market, helping with the lack of inventory. Even with the locked-in effect of people not wanting or being able to afford to leave their 3% mortgage, some must move for jobs and family changes. They may have waited one year, but can’t wait forever. House prices should be stable, not rise like they did between 2019 and 2022. In fact, in some markets, we might see housing prices fall, which could be another reason people sell. They are afraid of falling prices.

Interest Rates and the Housing Market in 2024

So, 2024 should be an improvement to 2023, thank goodness!

I hope that everyone had a wonderful holiday. I stayed in town and got to do lots of fun things with friends and family. Happy New Year!

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