Mortgage Rates Projected to Drop in 2024, Improving Affordability for Homebuyers
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Mortgage rates are expected to fall in 2024, making homebuying potentially easier than in 2023. Rates could decline by over 1 percentage point.
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The Federal Reserve is projected to cut interest rates 3 times in 2024. Rate cuts would likely lead to lower mortgage rates.
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Existing home prices may soften in 2024, improving affordability. But inventory will likely remain low unless more homeowners list homes.
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Mortgage rates have ticked up slightly in early 2024 as the spring homebuying season begins. Additional declines may happen later in the year.
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Lower mortgage rates could convince more current homeowners to sell, helping inventory. But significant new construction is still needed to meet buyer demand.