What do experts expect mortgage rates to do in 2024?

According to Mark Fleming, Chief Economist at First American, mortgage rates have already retreated from recent peaks near 8 percent and may fall further in 2024. Jessica Lautz from the National Association of Realtors notes that as rates ease, the market should turn more favorable for home buyers entering the new year.

How much is home price growth expected to increase in 2024?

The Home Price Expectation Survey from Fannie Mae, which surveyed over 100 economists and housing analysts, projects home price growth will moderate to 2.4 percent in 2024, down from 5.9 percent in 2023, as inventory improves and affordability increases.

Will there be more homes for sale in 2024?

Yes—experts expect home inventory to loosen up in 2024 as rates ease and more buyers and sellers re-enter the market. Lisa Sturtevant, Chief Economist at Bright MLS, notes that even homeowners locked into low rates will find increasing reasons to move and list their homes, particularly as rates approach 6.5 percent.

What is the overall outlook for the 2024 housing market?

Experts are optimistic about 2024, projecting slight home-price gains, easing inventory constraints, and increasing transaction volume. Mike Simonsen from Altos Research summarizes that conditions are looking up across the U.S. housing market after 2023's challenges with higher rates and limited supply.

Expert Quotes on the 2024 Housing Market Forecast

By Anne-Britt OstlundDecember 19, 20233 min read

Real Estate Market Updates

If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market in 2024. In 2023, higher mortgage rates, confusion over home price headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But what’s on the horizon for the new year?

The good news is, many experts are optimistic we’ve turned a corner and are headed in a positive direction.

Mortgage Rates Expected To Ease

Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with affordability challenges. Mark Fleming, Chief Economist at First American, explains how they may continue to drop:

“Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .”

Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market.”

The Supply of Homes for Sale May Grow

As rates ease, activity in the housing market should pick up because more buyers and sellers who had been holding off will jump back into action. If more sellers list, the supply of homes for sale will grow – a trend we’ve already started to see this year. Lisa Sturtevant, Chief Economist at Bright MLS, says:

“Supply will loosen up in 2024. Even homeowners who have been characterized as being ‘locked in’ to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%.”

Home Price Growth Should Moderate

And mortgage rates pulling back isn’t the only positive sign for affordability. Home price growth is expected to moderate too, as inventory improves but is still low overall. As the Home Price Expectation Survey (HPES) from Fannie Mae, a survey of over 100 economists, investment strategists, and housing market analysts, says:

“On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively.”

To wrap it up, experts project 2024 will be a better year for the housing market. So, if you’re thinking about making a move next year, know that early signs show we’re turning a corner. As Mike Simonsen, President and Founder of Altos Research, puts it:

“We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024.”

Bottom Line

Experts are optimistic about what 2024 holds for the housing market. If you’re looking to buy or sell a home in the new year, the best way to ensure you’re up to date on the latest forecasts is to partner with a trusted real estate agent.

As we eagerly anticipate what 2024 has in store for the real estate market, staying informed is key, especially if you're considering buying or selling a home. To navigate the dynamic landscape of Telluride real estate, look no further than Mountain Rose Realty. Our team, led by the experienced Anne-Britt Ostlund, is dedicated to providing you with unparalleled service and insights.

Whether you're in search of your dream home or looking to list your property, Anne-Britt and the Mountain Rose Realty team are here to guide you every step of the way. With a finger on the pulse of Telluride real estate, we keep you informed about market trends and forecasts, ensuring you make well-informed decisions in the fast-paced real estate world.

Explore our listings for the finest Telluride homes for sale, each curated to meet your unique preferences. Our commitment to excellence and personalized service sets Mountain Rose Realty apart, making us your trusted partner in Telluride real estate transactions.

Don't miss out on the exciting opportunities that 2024 may bring to the real estate market. Secure your success by partnering with Mountain Rose Realty – your gateway to Telluride homes for sale and expert guidance in the Telluride, CO, housing market. Contact us today and embark on a journey towards your real estate goals with confidence.

Frequently Asked Questions

What do experts expect mortgage rates to do in 2024?: According to Mark Fleming, Chief Economist at First American, mortgage rates have already retreated from recent peaks near 8 percent and may fall further in 2024. Jessica Lautz from the National Association of Realtors notes that as rates ease, the market should turn more favorable for home buyers entering the new year.
How much is home price growth expected to increase in 2024?: The Home Price Expectation Survey from Fannie Mae, which surveyed over 100 economists and housing analysts, projects home price growth will moderate to 2.4 percent in 2024, down from 5.9 percent in 2023, as inventory improves and affordability increases.
Will there be more homes for sale in 2024?: Yes—experts expect home inventory to loosen up in 2024 as rates ease and more buyers and sellers re-enter the market. Lisa Sturtevant, Chief Economist at Bright MLS, notes that even homeowners locked into low rates will find increasing reasons to move and list their homes, particularly as rates approach 6.5 percent.
What is the overall outlook for the 2024 housing market?: Experts are optimistic about 2024, projecting slight home-price gains, easing inventory constraints, and increasing transaction volume. Mike Simonsen from Altos Research summarizes that conditions are looking up across the U.S. housing market after 2023's challenges with higher rates and limited supply.