Navigating the 2024 Housing Market
The housing market in 2024 is still presenting challenges for both buyers and sellers. The same issues faced in 2023 persist, including high-interest rates, exorbitant home prices, and a limited supply of homes. The scarcity of affordable options is causing a decrease in housing sales volume while low supplies continue to keep home prices at a premium.
Experts at Bankrate.com reveal that mortgage interest rates spiked in October 2023, reaching an all-time high of 8.01%, last seen in 2000. Since then, rates have come down, but there is no indication of a housing market downturn so long as lending standards remain stringent and there isn’t a sufficient supply of homes to meet the demand. Goldman Sachs Research predicts that 30-year mortgage rates will open at 7.6% in 2024 and end at 7.1%. While home prices are expected to increase by 2% in 2023, they are expected to slow down to 1.9% in 2024 and then rise to 2.8% in 2025. If mortgage interest rates continue to ease, there is a likelihood that demand for homes will reignite despite higher purchase prices.
The Federal Reserve’s aggressive handling of inflation by raising overnight borrowing rates to banks has had a positive impact, and further rate hikes seem unlikely as the numbers approach the Fed’s target of 2% inflation.
For those who are squeezed out of the market, there is help available. FHA-guaranteed loans require as little as 3.5% down, and many state and local governments have increased programs for first-time and lower-income homebuyers. Lenders are offering grants, down payment assistance programs, and mortgages with no closing costs. The National Association of REALTORS® also offers the Housing Opportunity Program, which provides resources for homebuyers.
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Last Updated: [Date]12/17/2023
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