The Fed’s say the economy is cooling and the rate of inflation is falling. What does this mean for mortgage rates and the housing market in 2024? As I write this today (Jan 12th), rates are the lowest they have been in six months, which are coming down from a high. We are also in an election year so we may see the Fed’s more closely balance rate decreases while avoiding an economic recession.
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As mortgage rates continue to come down, more buyers will come back to the market creating more buyer competition. The mystery is what interest rate will motivate more sellers to give up their low 3% and 2% mortgage rates.
Right now, we are seeing an extremely low housing inventory due to these low interest rates and sellers are feeling stuck. Rental rates remain flat and with new rental inventory coming to market, we may see rental rates stabilize. The good news… you have Bear Flag to help you understand the market for your personal situation. Give us a call and use us as a resource for all things residential real estate.
– Martin
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