How rate changes could redefine your home buying or selling in 2024.
Today, I’ll talk about interest rates in 2024. Looking ahead, there’s been a notable shift in perspective. Previously, there were talks of a “higher for longer” strategy by the Federal Reserve. However, in the latest December meeting, Jerome Powell announced that due to decreased inflation, there are no immediate plans to raise interest rates; in fact, a decrease might be anticipated for 2024.
This announcement had a significant impact not only on the Federal Reserve and Treasury bills but also on the stock market, where the Dow surged past 37,000, and subsequently on mortgage interest rates, which dropped noticeably on the day of the announcement and the following day.
Surprisingly, rates have dipped below 6.5%, a trend not expected until later in 2024 or possibly 2025. For prospective home buyers, this suggests that the spring housing market might initiate as early as January. Acting sooner might be advisable to avoid heightened competition during the peak homebuying season.
Conversely, this could be advantageous for home sellers as increased demand might be on the horizon. Industry projections, such as NAR’s estimation of a 15% surge in home sales from 2023 to 2024, align with the potential impact of the interest rate environment, drawing more buyers into the market.
“Acting sooner might be advisable to avoid heightened competition during the peak homebuying season.”
Despite this positive outlook, challenges persist, notably the ongoing shortage of housing inventory. This scarcity has persisted for years and will likely continue until more homes are built and sellers become more inclined to list their properties.
Throughout the year, the number of days on market has exhibited stability in the latter part of the year, with a slight increase initially as the market adjusts to the evolving interest rate scenario.
Should you have any inquiries or wish to discuss how these developments might affect your plans for 2024, I’m available to provide insights and guidance on finding your next dream home. Call or email me anytime.