“Will 2024 Be a Good Year to Buy a Home?”

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Will Mortgage Rates Decline in 2024?

In October 2023, the average interest rate for a 30-year fixed-rate mortgage reached 8% for the first time since 2000, according to Mortgage News Daily. Experts predict that mortgage rates will decrease in 2024, likely settling in the upper 5% to mid 6% range by the end of the year.

Here are some 2024 mortgage rate predictions:

• Fannie Mae: 5.8%
• Mortgage Bankers Association: 6.1%
• National Association of Realtors: 6.3%
• Wells Fargo: 6.45%
• Realtor.com: 6.5%

These predictions are based on current economic data and trends. However, actual rates may vary depending on future developments in inflation and the 10-year Treasury note yield, which heavily influence mortgage rates.

Will Home Prices Decline in 2024?

Most experts anticipate that home prices will continue to rise in 2024, making homeownership challenging for many. However, some forecasts suggest a potential decline in prices. Here are a few predictions:

• Morgan Stanley: -3%
• Realtor.com: -1.7%
• National Association of Realtors: +1.4%
• Fannie Mae: +3.2%
• Mortgage Bankers Association: +4.1%
• Goldman Sachs: +5%

For context, home prices increased by 7.1% in 2023, according to Fannie Mae.

Will Inventory Increase in 2024?

Home inventory hit record lows in 2023, but experts expect a rebound in 2024. Specific predictions are scarce, as inflation and mortgage rates need to drop significantly for inventory to recover meaningfully. If interest rates decrease enough to encourage more homeowners to sell, inventory could rise by as much as 30%, according to the National Association of Realtors.

Will 2024 Continue to Be a Seller’s Market?

Even with a potential increase in home inventory, it may not be sufficient to meet demand, maintaining a seller’s market. In such a market, buyers face more competition and may need to offer above the asking price or waive certain contingencies to secure a home.

Will the Housing Market Crash in 2024?

Despite rapid home price increases in 2020 and 2021, experts generally do not foresee a market crash in 2024. While demand is relatively low, inventory remains lower, helping to stabilize prices. However, if demand drops further due to economic downturns or persistently high interest rates, a significant price decline could occur.

Should I Buy a House in 2024?

Deciding to buy a home is a personal choice, influenced by market conditions and your financial situation. If current interest rates make home prices unaffordable, it may be wise to wait for rates to decrease. However, if you find a home you love and can afford it, it might be worth securing a higher interest rate now and refinancing later.

Experts suggest that fall and winter are the best times to find lower prices, though inventory is typically lower during these seasons. Spring and summer offer more inventory but at higher prices.

Consider your situation and goals to determine the best time to buy a new home.

Consult With a Professional Who Knows Your Local Market

While national trends provide a general outlook, local real estate agents and professionals have insights into current trends in your area. If you’re planning to move in 2024, reach out to local experts for advice on maximizing your savings on a new home.

Now is also a good time to prepare your credit history for a home purchase. Review your credit score and report, and take steps to improve your credit if necessary before starting the mortgage process.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. Our team is here to help you navigate the housing market and find the best mortgage options for you.

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