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.
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."
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 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.
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.
See other articles related to: year in review 2023
This article originally published at https://dc.urbanturf.com/articles/blog/the_most_important_question_for_the_housing_market_in_2024/21800.
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