Easing Market Pressures Could Open Doors For Homebuyers In 2024 As Mortgage Rates Fall

Easing market pressures could open doors for homebuyers in 2024 as mortgage rates fall

by LEE STOLL | KOMO employees

Saturday, January 6, 2024

A Redfin real estate sign is pictured in front of a home for sale on October 31, 2017 in Seattle, Washington. (Photo by Stephen Brashear/Getty Images for Redfin)

SEATTLE (KOMO) —

With mortgage rates at their highest in decades, many are wondering whether they can finally afford to buy a home.

The National Association of Realtors expects 2023 to be the worst year for home sales in more than 10 years.

“As we look at the housing market in 2023, it has been incredibly difficult, particularly for first-time home buyers,” said Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors.

But market pressure is easing and inflation is cooling.

The Federal Reserve could cut interest rates three times this year. Mortgage rates are hovering around 6.6%, down from 8% in October.

“We expect mortgage rates to continue to fall in 2024. They have fallen significantly. This opens the affordability threshold for many potential homebuyers,” said Lautz.

Home prices nationwide rose 6.4% compared to December 2022, according to Seattle-based Redfin. In Seattle they rose 3.9%.

Sellers also post other offers. Experts believe that reducing the value of the house by 20% is a good goal.

Make sure you shop around for the lowest mortgage rate from different lenders.

“Make sure your financial house is in order if you embark on this scenario by paying off as much debt as you can and saving as much as you can,” Lautz said.