Posted 10/16/2023, 11:10:53 PM
Mortgage Rates Dropping but Home Prices Still Climbing, Predicts Industry Group
- Mortgage rates will drop significantly by end of 2024 but home prices will rise due to low inventory, per Mortgage Bankers Association (MBA) forecast
- MBA predicts rates will fall to 6.1% in 2024 and 5.5% in 2025 as economy slows and inflation declines
- MBA chief economist forecasts recession in early 2024 with unemployment rising to 5%
- MBA says first-time buyers will drive demand but face challenges like low supply, high prices, limited credit
- MBA expects delinquencies to increase in 2024 as borrowers struggle with taxes, insurance, student debt amid higher unemployment
