Posted 2/1/2024, 11:00:00 AM
Housing Demand Remains Strong Despite High Prices and Rates; Affordability Expected to Improve
- Pent-up demand for homes is very high (6.5 million units) but supply is limited
- Housing prices soared due to inflation and supply chain issues, but have stabilized
- As inflation falls, interest rates should also fall, making mortgages more affordable
- The economy looks reasonably strong, supporting housing demand
- If rates fall as expected, mortgage rates could drop below 6% by late 2024, sparking housing demand