Spring 2024 Housing Market Predictions

The CrossCountry Mortgage team recently sat down with Chris Bennett, principal of mortgage hedge advisory firm Vice Capital Markets, for his expert insights on the state of the market and what to expect this year. 

Mortgage originations are now on the upswing for spring 2024

Warmer weather is approaching, which means an uptick in home purchases will occur. Buyers holding out on a drastic rate drop should reconsider. Housing inventory nationwide continues to be sparse. Once rates drop, home prices are expected to increase.  

Don’t expect rates to immediately drop. 

Although, we are trending in the right direction. 

We’re in a similar market to what we saw in the 90s. The Fed will most likely make smaller adjustments as policy changes from being very restrictive to a more moderate and long-run neutral level, which will help us move toward more average and historical mortgage rates of around 5%. 

Mortgage rates already reflect expected cuts to short-term rates this year and next, and the pace and number of those coming policy changes will continue to be highly data dependent. 

We’re slowly moving to a more normal market, which will create more housing opportunities. 

Don’t expect to see a normal market with a 5% interest rate this year. We may be able to be there by the end of next year, but it’ll only be a slow progression toward that.  

The good news is that as this happens, not only does it create opportunities for people to save money by being able to refinance, but also housing inventory will increase due to lower interest rates.  

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