A stubborn lack of inventory and high mortgage rates kept many prospective homebuyers at bay for most of 2023.
Homeowners are holding on to their homes – and the sub-5% mortgage interest rates – instead of selling their homes to buy another at today’s elevated rates. With 85% of homeowners locked into pandemic-era low interest rates, it’s not surprising that existing home sales were down 15% year over year in October. Housing inventory was down 6% during the same timeframe.
But with mortgage rates steadily dropping over the past six weeks, averaging 7% for a 30-year fixed mortgage, down from nearly 7.8% at the end of October, experts believe 2024 could be the year that prospective homebuyers finally catch a break.
Which markets are poised to see the strongest combined increase in home sales and listing prices in the coming year?
Housing:Mortgage rates are dropping. Is this a