Mortgage rates and home prices are two of the most important factors to consider when buying a home. In 2023, both mortgage rates and home prices have been rising, making it more difficult for buyers to afford a home.

So, what can buyers expect in 2024? Here is a look at the latest projections for mortgage rates and home prices:

Mortgage rates

Most experts are predicting that mortgage rates will remain elevated in 2024, but they are also expecting rates to come down slightly from current levels. The National Association of Realtors (NAR) is forecasting that mortgage rates will average 6.0% in 2024, while Fannie Mae is forecasting a rate of 6.5%.

There are a number of factors that could influence mortgage rates in 2024, including inflation, economic growth, and Federal Reserve policy. If inflation continues to rise, the Federal Reserve is likely to continue raising interest rates, which could lead to higher mortgage rates. Conversely, if inflation comes down or the economy slows down, the Federal Reserve may be more likely to pause or even reverse its interest rate hikes, which could lead to lower mortgage rates.

Home prices

Home price growth is expected to slow in 2024, but most experts are still expecting modest price appreciation. The NAR is forecasting that home prices will increase by 3.0% to 4.0% in 2024, while Fannie Mae is forecasting an increase of 4.5%.

There are a number of factors that could influence home prices in 2024, including inventory levels, mortgage rates, and the overall economy. If the number of homes for sale continues to be low, this could put upward pressure on home prices. Conversely, if the number of homes for sale increases, this could put downward pressure on home prices.

What does this mean for homebuyers?

If you are planning to buy a home in 2024, you should be prepared for higher mortgage rates and slower home price growth. You should also be sure to shop around for the best mortgage rate and to get pre-approved for a loan before you start shopping for a home.

Here are some additional tips for homebuyers in 2024:

• Be prepared to act quickly. Homes are selling quickly in many markets, so you need to be prepared to make an offer when you find a home you love.
• Be flexible with your budget and wishlist. It may be necessary to compromise on some things in order to afford a home in 2024.
• Consider working with a real estate agent. A good real estate agent can help you find the right home for your needs and budget.

Conclusion

Buying a home in 2024 will be more challenging than it has been in recent years, but it is still possible. By being prepared and by working with a qualified real estate agent, you can increase your chances of finding the right home for you and your family.