The Most Important Question For the Housing Market in 2024

• December 19th 2023

by UrbanTurf Staff

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While the trajectory of home prices and whether more homes comes on the market are big questions for the housing market in 2024, the most critical question is: what will mortgage rates do next year?

With this question in mind, UrbanTurf gathered a number of different predictions from around the internet as to what will happen with rates next year. 

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Mortgage Bankers Association 

In August, the Mortgage Bankers Association put out its forecast for where it sees rates heading in the next two years. The MBA expects rates to average: 

• 6.2% in Q4 2023
• 5.0% Q4 2024
• 4.6% in Q4 2025

National Association of Realtors

"The Fed indicated that they will hold the Fed Funds Rate steady for now and cut rates three times in 2024. This is all welcome news for potential home buyers and sellers, as mortgage interest rates will decrease. NAR forecasts that mortgage interest rates will average 6.3% in 2024."

Redfin

The brokerage Redfin thinks that rates will linger around 7% in the first quarter, then decline throughout the year, ending 2024 at about 6.6%. 

Bright MLS

Bright predicts that mortgage rates will fall below 7% in the first quarter of next year and range between 6-6.5% before reaching 6.2% at year-end.

Wells Fargo 

The Economics Group of Wells Fargo Bank puts the 30-year mortgage rate at 7.2% in the first quarter of 2024, declining to 6.05% by the end of the year. Wells Fargo economists predict that rates will dip below 6% at the beginning of 2025.

This article originally published at https://dc.urbanturf.com/articles/blog/the_most_important_question_for_the_housing_market_in_2024/21800.