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Hopeful home buyers are getting an early holiday gift: declining mortgage rates. Since hitting a 2023 high in late October, the average 30-year fixed rate has receded by over half a percent.
The average 30-year fixed rate slid 19 basis points to 7.03% in the week ending December 7, the sixth consecutive week of decreases, according to Freddie Mac. A basis point is one-hundredth of one percentage point.
Yet, despite this easing, a perfect storm of still-high mortgage rates and home prices amid historically low housing stock continues to put homeownership out of reach for many—most notably first-time buyers—who remain more pessimistic than ever about being able to afford a home as we close in on 2024.
Housing Market Forecast for 2024
2023 was a demoralizing year for many aspiring home buyers.
Mortgage rates surged—hitting a high of 7.79%—and median home prices in the third quarter were north of $400,000. Moreover, in July, average monthly payments hit their highest level ever at $2,306, according to Intercontinental Exchange, a financial technology and data services provider.
However, 2024 may be a better year to purchase a home—at least for some. While home prices will likely remain elevated—and even increase in some markets—industry experts expect prices in certain areas of the…
