Experts Revise Mortgage Rate Forecasts for Remainder of 2024
Housing experts and homebuyers anticipated better buying conditions in early 2024, with expected interest rate drops, increased inventory, and cooling home prices.
However, halfway through 2024, highly anticipated interest rate cuts have not occurred, home prices continue to rise, and affordability remains a challenge.
Experts are widely revising their forecasts about rates and prices for the rest of 2024 due to uncertainty.
Higher Mortgage Rates for Longer
Persistent inflation pressure has led the Federal Reserve to maintain strict monetary policy, keeping mortgage rates elevated.
Mortgage rates are expected to remain higher for longer, even if the Fed cuts the benchmark interest rate.
Housing experts and financial institutions have upward-revised their rate forecasts, with Fannie Mae predicting 6.4%, NAR predicting 6.5%, and Wells Fargo predicting 6.50%.
Growing Home Prices
Housing experts predict home prices will continue to rise for the rest of 2024 due to persistent housing inflation and inventory shortages.
Fannie Mae forecasts a nearly 5% price appreciation by the end of 2024, while NAR predicts a median price of $393,000 for existing homes.
Total housing inventory remains low, with only 3.2 months' supply in March, creating upward pressure on prices.
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