• In 2024, homebuyers can expect lower mortgage rates, higher home prices, and a lot more competition.
  • Hopeful 2024 buyers should start preparing now by saving money and paying down debt to improve credit scores.
  • Look into affordable mortgage programs and down payment assistance to boost affordability.

Home price predictions 2024

Experts generally expect home prices to increase in 2024.

Experts generally expect home prices to increase in 2024.

  • Fannie Mae currently sees home prices rising 2.8% year over year by the end of 2024
  • The Mortgage Bankers Association believes prices could rise as much as 4.1% next year
  • The National Association of Realtors has more conservative expectations and thinks existing-home prices will inch up just 0.7% overall in 2024, with a possible small dip in prices in the second quarter

Mortgage rate predictions 2024

  • Fannie Mae forecasts a more gradual drop in rates and believes 30-year fixed rates will remain in the low 7% range during the buying season — which typically lasts from spring through early fall — and reach 7.1% by the end of 2024
  • The MBA's forecast is more aggressive, predicting that mortgage rates could hover in the 6.3% to 6.6% range during the peak homebuying season before falling to 6.1% to close out 2024
  • NAR predicts rates will be in the upper 6% range for the homebuying season and drop to 6.3% in the last quarter of the year
  • In its latest forecast, Realtor.com said it believes mortgage rates will average 6.8% overall in 2024 and reach a low of 6.5% by the end of the year

Whether mortgage rates actually trend down in 2024, and by how much, depends on the path the Federal Reserve takes in its fight against inflation.

Investors believe the Fed may start cutting rates next year, which would remove a lot of upward pressure off of mortgage rates and allow them to fall more substantially. But Fed officials have made it clear they want to see more data on how inflation is trending before they consider taking the foot off the gas. If inflation stops decelerating or speeds back up, the Fed could hike the federal funds rate, pushing mortgage rates higher.

What this means for 2024 homebuyers

If you're hoping to buy a house in 2024, you'll want to start planning now. Next year is going to be better for buyers than 2023 in many ways, but it's also going to be more challenging when it comes to prices and competition.

Lower mortgage rates will undoubtedly improve affordability for borrowers, but with that will come increased demand. This will keep home prices high and likely push them up even further. Finding a home in your price range may become even trickier, and you may need to make a lot of offers before you get one accepted.