Housing Market Predictions 2024

The CrossCountry Mortgage team recently sat down with Chris Bennett, principal of mortgage hedge advisory firm Vice Capital Markets, for his expert insights on the state of the market and what to expect in 2024.

One of the worst bear markets for bonds in history is over.

The worst is officially behind us. And within the past 6 weeks, we’ve seen one of the biggest bond market rallies since the 1980s. 

Interest rates have stabilized and could potentially come down further in 2024.

Housing inventory will continue to be tight.

Homeowners interested in purchasing a new home aren’t willing to trade a 3% interest rate for a 6.5% or higher interest rate unless they absolutely have to.

Consult with your local loan officer to learn about offerings that can help combat a high-interest rate and get you into the home of your dreams.

Don’t expect to see drastic interest rate changes.

It’s hard to make predictions because no one knows for sure what the future holds. There are things that can slightly move the needle rate-wise, but I don’t foresee anything drastic happening to get the rates in the 5’s or lower until possibly later in the year.

The future of 2024 rates will all be highly data-dependent. What the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) Index show in January, February, and March will go a long way toward setting the pace and timing of easing by the Fed in the latter half of the year.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.