Mortgage Winter to Expected to Thaw

As we look ahead to the coming year, there is hope for the housing industry to experience some relief after a challenging 2023. It’s important to acknowledge that this may only be a small step toward a more sustainable market.

According to industry experts interviewed by HousingWire, the housing industry and its secondary market are expected to remain sluggish in 2024. While some sectors may see slight improvements, others are likely to remain stagnant or even decline.

Despite facing a slow start, the projected forecast for 2024 shows improvement compared to the difficult year of 2023. The industry struggled with rising interest rates and market instability, as well as liquidity issues in both the banking and non-banking sectors. Additionally, the combination of high home prices and a shortage of housing inventory hindered mortgage originations and the secondary market for these loans.

According to Fannie Mae’s chief economist, Doug Duncan, the housing and mortgage markets will begin 2024 at a similar level to where they were at the start of 2023, despite the recent mortgage rate rally. Although there may be an increase in home sales in the upcoming year, the combination of slightly higher home prices and continued high-interest rates indicates a gradual recovery from the recessionary levels of housing activity.

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