Mortgage Rates Could Drop to 6% by 2024, Improving Affordability Slightly for Homebuyers
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Economists forecast mortgage rates dropping to 6% by 2024, providing some relief for homebuyers after recent spikes to 8%.
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Affordability expected to improve slightly, with median monthly costs dipping under $2,200 compared to $2,240 in 2022.
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New home construction continues rising, helping add supply, but still falls far short of ideal inventory levels.
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Forecast depends on inflation continuing to moderate so Fed can ease interest rate hikes. A resurgence could stall the housing market.
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Homebuyers should still shop rates and get pre-approved to take advantage of current declines.