Homes might be more affordable in 2024, but that doesn’t mean you should wait to buy one

The average interest rate for the benchmark 30-year fixed mortgage reached 7.08%, as of Monday. However, with the economy expected to cool and possibly dip into a recession, many recent forecasts expect rates to drop to 6% or below in 2024, including a Fannie Mae projection of 5.2%.

A drop of 1% in mortgage rates works out to about $200 in monthly mortgage costs, for a 30-year fixed rate on a $300,000 home loan, according to CNBC Make it’s mortgage calculator.

Should you buy a home in 2023 or 2024?

While it might be tempting to hold off on buying a property until a better deal arrives, there’s no guarantee that mortgage rates will drop or that homes will become more affordable in 2024, say real estate analysts and economists interviewed by CNBC Make It.

Despite forecasts of lower mortgage rates in 2024, don’t expect them to bottom out to the record lows of the past decade, either, says Lawrence Yun, chief economist at the National Association of Realtors.

“I wouldn’t necessarily wait around and see if you can get the best possible deal because timing the housing market is very difficult,” says Cristian deRitis, deputy chair economist at Moody’s Analytics.

https://www.cnbc.com/2023/03/07/why-homebuyers-shouldnt-wait-until-2024-for-cheaper-home-costs.html