Home Prices and Demand Expected to Rise as Rates Fall
• A strong economy and falling inflation could mean lower mortgage rates, boosting housing demand • Home prices are forecast to increase 5% in 2024 and 4% in 2025 amid high demand and low inventory • Mortgage rates have stabilized around 6.7% but could fall later this year as inflation drops • New home sales rose 8% in December but inventory fell, indicating tight supply • Low inventory plus higher demand from lower rates could worsen shortages for buyers