According to the latest Bloomberg Markets Live Pulse survey, mortgage rates in the United States are predicted to decrease by the end of 2024. The median from 236 respondents suggests that by December 31st, the rate on a fixed-rate, 30-year mortgage will fall to an estimated 5.5%. This would mark a significant decline from its current level of approximately 6.69%, and it would be the first annual drop after three consecutive years of increases.
In addition, Bloomberg News reported that in elevated mortgage rates caused sales of existing homes to reach their lowest pace since1995 in2023. Only4.09 million existing homes were sold during this time period according to data from National Association of Realtors.
Chief economist at Moody’s Analytics Mark Zandi told Bloomberg that while there may still be challenges ahead for housing market recovery, “the worst is over.” He also predicts continued downward trend for mortgage rates throughout this year.
Last April,CNN shared findings from John Burns Research and Consulting which revealed that a tipping point for home buyers was reached when mortgages hit a rateof5.5%. In fact,the consulting team observed success among home builders who offered subsidies on buyer’s mortgages bringing overall interest below this threshold.CEO John Burns and senior research analyst Maegan Sherlock wrote about these observations across various regions nationwide.
However,Zandi recently posted on X statingthat high home prices remain an ongoing issue.In particular,this has made homeownership unattainablefor first-time buyers due affordability concerns he noted last weekend.
