Just the mere idea of mortgage rates moving lower in the near future may have a significant impact on the housing market in 2024, influencing both prospective homebuyers and current homeowners.
Mortgage rates play a role in shaping the affordability of homes, making fluctuations in interest rates a critical factor in the overall health of the housing market. Lower rates make homeownership more accessible by reducing the cost of borrowing and expanding the pool of qualified buyers.
If mortgage rates do continue going down, there will likely be a surge in demand from potential homebuyers.
The report showed that 31% of consumers expect mortgage rates to rise, while 36% believe they’ll remain where they are now.
Conventional 30-year fixed-rate mortgage rates are around 6.6% currently, down from nearly 8% in November of last year.
As prospective homebuyers look ahead to potentially lower rates this year, they may pull the trigger on a house even before rates drop significantly, anticipating that one day they will refinance.
Comments