Pure speculation, to be sure but here’s what a number of analysts foresee for the remainder of 2024:
- Mortgage rates will fall … some: While the Federal Reserve certainly seems on pace to cut interest rates in September – and possibly again before the end of the year – it’s difficult to say precisely the impact this will have on mortgage rates, other than to say they will definitely fall.
- Inventory will rise … some: While housing stock has improved considerably in2024 to date – climbing 35% on a year-over year basis – it’s predicted that as mortgage rates drop, more current homeowners will consider putting their homes on the market.
- Home prices will increase … some: Even as mortgage rates drop and inventory rises, home prices are expected in continue to inch up, maybe by 4.6% by the close of 2024.
- Home sales will increase … some: So, taking into account all of the above, home sales are projected to increase by .08% to a total of 4.1 million, the second lowest total since 2012.