Rates vs. Inflation - What's in Store For 2024

Dated: February 9 2024

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Rates vs. Inflation ... What's in Store For 2024

Despite bad rate news recently, inflation is still improving and rate cuts are still coming. Plus Builder Sentiment is up 7 points as interest rates fall.

Fannie Mae Predicts Mortgage Rates Will Fall Below 6% in 2024 

In addition to Fannie Mae's prediction that mortgage rates will fall below 6% in 2024, they are also predicting homebuilders to continue to add new supply.  All of this should help with home affordability and address the issue of low inventory.

Is This The Time To Buy A Home? 

The year 2023 saw the lowest home sales in nearly 30 years with a lot of would-be buyers sitting on the fence, but the tide is turning... Pending home sales are now UP 4.1%. That is the biggest gain since September 2021, and the highest level in more than a year!

Gen Z and millennials are feeling far more confident now than they were last quarter that they can buy a house in the next four months. Another point worth noting is that investors bought nearly 33% fewer homes in 2023 than they did in 2022. Fewer investors mean more opportunity for owner-occupants.

Important Market Data 

Important market data this week will be the GDP reports on Thursday and Core PCE on Friday. Both reports will have the potential to move the markets and affect rates. According to Mortgage News Daily, the NATIONAL AVERAGE rates were DOWN ( while local rates are often a bit lower ).

     . . . 6.87% Conventional 30 Year

     . . . 6.23% Conventional 15 Year

     . . . 6.12% FHA 30 Year

     . . . 6.13% VA 30 Year

If you have been on the fence about buying a home, this is the perfect time for you to get in the game. Don't miss the market as buyer activity surges and drives us back into a seller's market. Check out what homes are for sale in your neighborhood.

If you've got questions? I've got the answers. Let's chat about your real estate needs — call, text, or email me any time. I look forward to connecting with you.

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