2024 Real Estate Forecast: Mortgage Rates, Home Prices, and Market Trends

Experts predict improvements in the housing market in 2024 as mortgage rates drop below 7% for the first time since August. Lower interest rates will provide buyers with more budget flexibility, and increased inventory will lead to more home construction. However, affordability remains a challenge, with home prices expected to stay flat. High costs have delayed homeownership, pushing the typical age of renters and first-time homebuyers upwards. Renters are getting older, and many are considering renting single-family homes instead. Despite the challenges, there is still pent-up demand for homeownership, as it remains the number one way to build wealth in America.