After dream mortgage rates during the pandemic, 2023 was a very expensive year to buy a home. What awaits us for 2024? Neither the estimates nor the buyers’ hopes are a certainty, but They can give us a close perspective of what we could expect if we want to purchase a home. in United States.
About 31% of home buyers think that Borrowing costs for home loans will decrease in the next 12 monthsaccording to the new Fannie Mae survey from December. That’s more optimistic than what was reported a month earlier.
In other results, the same percentage of respondents expect mortgage rates to increase, while 36% believe they will remain around their current level.
“In particular, homeowners and higher-income groups reported greater optimism about rates than renters,” Mark Palim, deputy chief economist at Fannie Mae, said in a statement. “In fact, for the first time in the history of our National Housing Survey, more net homeowners believe mortgage rates will go down rather than go up.”
The fixed rate of a conventional 30-year mortgage is 6.62%up from nearly 8% in November, according to Fannie Mae.
For all the agents that make up the real estate market (sellers, buyers and refinancers), the question that remains is: how low would mortgage rates be? Although the survey does not establish how much the rates could be reduced, experts have pointed out on other occasions that It is very difficult for us to see the rates that were around 3% during the pandemic. Most real estate specialists believe rates will remain in the 6% range, according to Realtor.com.
Many consumers believe that increasing interest rates from the Federal Reserve (Fed) directly impact mortgage rates. Lenders track 10-year US Treasuries, which are affected by the monetary policies of the central bank. Investor expectations about future inflation and global demand for Treasuries also influence mortgage lending rates.
Independent of mortgage rates, another challenge is pricing. The average cost of a home in the United States exceeded $408,000 dollars3.6% more than the previous year, according to Redfin.
Only 17% of consumers surveyed by Fannie Mae believe now is a good time to buy a home. However, if rates were lowered, more sellers would be able to put their products on the market, which would help lower prices.
“Homeowners have told us repeatedly lately that High mortgage rates are the main reason it’s a bad time to buy and sell a homeso a more positive outlook for mortgage rates may encourage some to put their homes up for sale, helping to increase the supply of existing homes in the new year,” Palim concluded.
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2024-01-11 20:55:15
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