2024 Outlook: Favorable Shift in U.S. Housing Market and Mortgage Rates

Redfin predicts that the U.S. housing market will shift in favor of buyers in 2024, as mortgage rates decrease and more homes are listed for sale. The housing market faced challenges in 2023 due to high mortgage rates, low supply, and high prices. However, with mortgage rates expected to decline and more sellers entering the market, buyers may find relief. Redfin forecasts a 1% year-on-year decline in home prices in Q2 and Q3, the first decline since 2012. Home sales are projected to increase by 5% year-on-year, and the average 30-year mortgage rate is expected to start at around 7% in Q1 before decreasing throughout the year.