2024 is expected to bring some stability to the housing market after a period of uncertainty. According to the Strategic Research (ESR) Group, the housing market will gradually return to normalcy this year, which could present both challenges and opportunities in the face of economic uncertainty.
Lower Mortgage Rates and Refinance Opportunities
One of the key predictions from the ESR Group is that mortgage rates will decrease in 2024, possibly dropping below 6 percent by the end of the year. This anticipated drop in rates is likely to lead to a surge in mortgage refinancing, which has already been on the rise.
These lower interest rates are also expected to alleviate the “lock-in effect” currently impacting existing home sales. As a result, the ESR Group predicts an increase in existing home sales However, a complete return to pre-pandemic sales levels may take several years due to ongoing housing affordability challenges.