Hello, Lonny Levine here from Meadowbrook Financial Bankers, bringing you insights from Logan Mohtashami’s 2024 housing market and rate forecast. Let’s dive into the key takeaways:
2024 Housing Market Insights
In 2024, we’re looking at a transformative year in the housing market with mortgage rates potentially dropping and home prices seeing modest growth. Understanding these trends is crucial for anyone in the mortgage industry.
- Mortgage Rates: The forecast anticipates mortgage rates ranging between 7.25% to 5.75%. If economic data weakens, we could see sub-5% rates, boosting the housing market.
- Home Prices: Expect low single-digit national home-price gains. Prices could rise faster if mortgage rates remain low and new listings don’t increase significantly.
- Existing Home Sales: Sales growth needs lower mortgage rates. For substantial sales growth, rates need to drop below 6%.
- New Home Sales: The forecast is positive, especially if mortgage rates decrease, allowing builders to sell more homes.
- Economic Outlook: The overall economic outlook is similar to 2023. A decrease in mortgage rates could positively impact the single-family housing market and construction employment.
The Bigger Picture
Monitoring weekly data is crucial in this dynamic market. With the Federal Reserve’s rate hike cycle ending, we’re entering a period where slight changes in economic indicators can significantly impact the housing market.
Remember, these are forecasts, not certainties. Staying informed with the latest data is key to navigating these changes.
In this fluctuating market, understanding trends and forecasts can be pivotal for mortgage originators like us. Let’s keep an eye on these developments as we help our clients navigate their home-buying journeys in 2024.
Stay tuned for more updates at Lending With Lonny.