Springing into the market
Some good news for homebuyers as we head into spring: interest rates have been improving, housing supply has increased, and average home price growth has slowed. Although home inventory still remains tighter than it was pre-Covid, all the improvements we’re seeing indicate that the housing market will continue to get stronger throughout 2024.
-Robert Heck, VP of Mortgage @ Morty
Paid Partner
Let’s break down some of the trends we’ve been seeing:
Interest Rates. 30-year fixed rates have started to come down, especially as compared to the over 8% rates we saw in October 2023. The Federal Reserve announced that it is holding off on rate cuts, but expects to revisit cuts later this year. That means we expect that rates will come down gradually over the next 12 months. We will get an update on this when the Fed reconvenes on March 20th.
Affordability. Affordability has improved slightly with rates dropping since October’s 28-year high. The growth in homes priced in the $200,000 to $350,000 range outpaced all other price categories, with home inventory in this range grew by 20.6% compared to last year. We’re also seeing more price reductions on current listings and homes sitting on the market for longer. All of this means that supply and demand are starting to get in better alignment.
Inventory. Supply of homes remains tight, but has been improving over the past few months. The number of homes actively for sale is up almost 15% year over year, marking the fourth consecutive month of growth. We expect this trend to continue.
