WASHINGTON, DC – The housing market is expected to begin a gradual return to a more normal balance in 2024, following years of significant oscillations in mortgage rates and divergences of key housing market measures from their historical, pre-pandemic relationships, according to the January 2024 commentary from the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group. The ESR Group expects mortgage rates to decline in 2024, ending the year below 6 percent.
“In 2024, we expect home sales and mortgage origination activity to begin a gradual recovery in the presence of a slow-growing economy,” said Doug Duncan, Fannie Mae Senior Vice President, and Chief Economist. “Inflation’s decline and the resultant Fed pivot to signaling future rate cuts rates lead us to believe that home sales and mortgage originations likely bottomed out in the second half of 2023 and that a gradual improvement is now underway.”
Courtesy of Darlena Marmins with BOK Financial Mortgage https://aimeestraw.com/local-resources/darlena-marmins/?profession=#