Since the onset of the COVID-19 pandemic in March 2020, mortgage rates skyrocketed. The Michigan Journal of Economics explained that increased demand for homes went up while supply stagnated and remained extremely low. These factors resulted in higher home prices and higher mortgage interest rates.
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Over the past several years, many buyers have been pushed out of the housing market or have been forced to wait to buy a home. Meanwhile, sellers have been reluctant to sell their homes for fear of losing the favorable interest rates they locked in before the pandemic set in, thus leading to an even further supply of available homes on the market.
Entering the real estate market might seem impossible at the moment. However, economists predict that mortgage rates will fall in 2024, which should shift housing market dynamics significantly.
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What Are The Current Average Mortgage Rates?
Here are the current average mortgage rates in the US as of March 21st, 2024, according to the Federal Reserve Bank of St. Louis:
Late 2024 May Be A Better Time To Buy
HousingWire reported that lower mortgage rates are expected in 2024. The expectations for the first quarter of the year ranged from 7% to 7.6%. This is pretty consistent with current rates as of today. However, expectations for the final quarter of the year range from 7.1% to 6.05%, which are even lower.
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Thankfully mortgage interest rates seem to be on the decline as we move through 2024, which will allow more prospective home buyers to once again reenter the market. If you’re considering purchasing a home, it might be in your best interest to wait until later this year.
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This article originally appeared on GOBankingRates.com: Housing Market 2024: Economists Predict Lower Mortgage Rates — Is It Time for You to Buy?
