Mortgage Rates Expected to Fall, Improving Housing Affordability

Mortgage rates are expected to fall in the coming months as inflation slows and the Fed pauses rate hikes, improving affordability.

The Mortgage Bankers Association predicts rates will drop to 5.4% by end of 2024.

Home prices are unlikely to see huge drops this year despite high rates slowing demand. Low supply will prop up prices.

Recessions sometimes but not always cause home prices to fall due to reduced demand.

Experts recommend keeping housing expenses below 28% of gross monthly income to avoid overextending your budget.