The housing market in 2024 has been a dynamic landscape shaped by fluctuating mortgage rates, changing home prices, and the ever-evolving inventory levels. As we delve into the current state of the market, we’ll explore expert opinions, recent data, and predictions for the rest of the year.
Mortgage Rates: The Current Landscape
As of May 2024, the average 30-year fixed mortgage rate stands at 7.09%, a slight dip from its year-to-date high at the beginning of the month (Freddie Mac). This rate is nearly double its 3.22% level in early 2022, indicating a significant increase over the past two years. The average cost of a 15-year, fixed-rate mortgage has also surged to 6.55%, compared to 2.43% in early 2022 (www.forbes.com (http://www.forbes.com)).
Predictions for Mortgage Rates:
Experts have varying opinions on where mortgage rates are headed for the rest of 2024. The Mortgage Bankers Association (MBA) predicts rates will likely be in the 6% to 7% range for most of the year, with the bulk of the declines expected in 2025 (www.forbes.com (http://www.forbes.com)). The Palisades Group managing member and chief investment officer Jack Macdowell anticipates that rates will remain close to 7% for the busy spring home-buying season (www.forbes.com (http://www.forbes.com)). However, Goldman Sachs (GS) forecasts that 30-year fixed mortgage rates will be at 6.6% by the end of 2024 (Tweet by @MikeZaccardi, 21:50 2024-04-03).
Home Prices and Inventory:
The median sale price for an existing home in the U.S. was $393,500 as of March 2024, marking the highest March median on record with the National Association of Realtors (NAR) (www.usnews.com (http://www.usnews.com)). Despite the high prices, the overall number of existing homes on the market for sale as of March sat at 1.11 million units, up from both the previous month and the previous year (www.usnews.com (http://www.usnews.com)). This increase in inventory, albeit modest, offers some relief to buyers navigating the market.
Predictions for Home Prices and Inventory:
NAR Chief Economist Lawrence Yun forecasts that interest rates will fall in the long term and 2024 existing-home sales will rise to 4.46 million during the Residential Economic Issues & Trends Forum at the REALTORS® Legislative Meetings (Tweet by @djbrianpate, 20:09 2024-05-08). Zillow’s predictions for the housing market in 2024 suggest that more homes will hit the market as homeowners accept that mortgage rates aren’t falling any time soon (www.zillow.com (http://www.zillow.com)). This indicates a potential increase in inventory, which could help moderate home prices in the coming months.
Conclusion:
The 2024 housing market presents a mixed bag for buyers and sellers, with mortgage rates hovering in a relatively high range and home prices remaining elevated. The key to navigating this market successfully lies in understanding the current trends and making informed decisions based on expert predictions. As we move further into the year, it will be crucial to monitor changes in mortgage rates, home prices, and inventory levels to stay ahead of the curve in this dynamic environment.
Article assisted by AI Grok on X.
