Unlocking US Home Market: Anticipating Shifts in 2024 Mortgage Trends

Unlocking Home Market: Anticipating Shifts in 2024 Mortgage Trends

High-interest rates have pushed many would-be home sellers and buyers to the sidelines in 2023.

Yet, there are signs both sides may be more willing to take on a high-rate mortgage if other key factors are aligned.

More than half, 54%, of homeowners said they would move if they found a more affordable area to live in, even if it meant paying a higher interest rate on their mortgage, a new survey from Bank of America found. Meanwhile, half said they would sell if they found their dream home.

“Americans still believe in the dream of homeownership,” said Matt Vernon, head of consumer lending at Bank of America. “They still believe that it’s a key component of financial success. They still believe that it’s a measuring stick of accomplishment.”

Bank of America polled 500 homeowners and 500 renters in late September.

See Also:  Tyler Winklevoss: The outspoken crypto billionaire who predicted the 2024 election

Why many homeowners are ‘staying put’

Last week, the average interest rate for certain 30-year fixed-rate mortgages decreased to 7.37% from 7.41% the prior week, in the fourth successive week of declines. Lower mortgage rates have prompted mortgage applications to pick up.

Yet, about 80% of outstanding U.S. mortgages have interest rates below 5%, according to Bank of America’s research. Even the recent decline in mortgage rates may not provide an incentive for homeowners to move.

“The story for 2023 has been one of homeowners staying put,” said Daryl Fairweather, chief economist at Redfin.

Factors that have contributed to that immobility have recently started to ease, though it remains to be seen whether that will last.

The median monthly mortgage payment is down more than $150 from the peak, marking the lowest level in three months, Redfin’s Nov. 30 research found. Monthly payments are falling as mortgage rates come down from their peak.

See Also:  2022 Stimulus Checks: Is Your State Giving Out Money This Year?

The weekly average 30-year mortgage rate fell to 7.29% in late November, down from a 7.79% high in October, according to Redfin.

Factors that have contributed to that immobility have recently started to ease, though it remains to be seen whether that will last.

The median monthly mortgage payment is down more than $150 from the peak, marking the lowest level in three months, Redfin’s Nov. 30 research found. Monthly payments are falling as mortgage rates come down from their peak.

The weekly average 30-year mortgage rate fell to 7.29% in late November, down from a 7.79% high in October, according to Redfin.

Those declining rates have offset rising home prices, with the median sale price up 4%. The number of new listings, which is up 6%, has had the biggest year-over-year increase since 2021, according to Redfin.

See Also:  South Carolina family sentenced for stealing stimulus checks

More prospective buyers willing to take a risk

More prospective homebuyers may be willing to take a chance to reach their goal, with 62% indicating they are waiting for prices and/or rates to fall before buying a home, down from 85% who said the same six months ago, according to Bank of America.

Major life events tend to prompt people to move, according to Skylar Olsen, chief economist at Zillow.

“The problem is, right now, the finances block people from following that major fundamental change,” Olsen said.

Avatar photo
About Shrabani Sarkar 748 Articles
Shrabani Sarkar is a celebrity news author who has been covering the latest gossip and scandals in the entertainment industry for Panasiabiz. Shrabani is passionate about celebrity news and enjoys sharing her insights and opinions with her loyal fans. Shrabani can be reached at [email protected]

Be the first to comment

Leave a Reply

Your email address will not be published.


*