LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LondonWallet
No Result
View All Result

High mortgage rates have limited opportunities for homebuyers and sellers. How that may change in 2024

Tom Robbins by Tom Robbins
December 5, 2023
in Investing
High mortgage rates have limited opportunities for homebuyers and sellers. How that may change in 2024
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


Why many homeowners are ‘staying put’

Last week, the average interest rate for certain 30-year fixed-rate mortgages decreased to 7.37% from 7.41% the prior week, in the fourth successive week of declines. Lower mortgage rates have prompted mortgage applications to pick up.

Yet about 80% of outstanding U.S. mortgages have interest rates below 5%, according to Bank of America’s research. Even the recent decline in mortgage rates may not provide incentive for homeowners to move.

“The story for 2023 has been one of homeowners staying put,” said Daryl Fairweather, chief economist at Redfin.

Factors that have contributed to that immobility have recently started to ease, though it remains to be seen whether that will last.

The median monthly mortgage payment is down more than $150 from the peak, marking the the lowest level in three months, Redfin’s Nov. 30 research found. Monthly payments are falling as mortgage rates come down from their peak.

The weekly average 30-year mortgage rate fell to 7.29% in late November, down from a 7.79% high in October, according to Redfin.

Those declining rates have offset rising home prices, with the median sale price up 4%. The number of new listings, which are up 6%, has had the biggest year-over-year increase since 2021, according to Redfin.

More prospective buyers willing to take a risk

More prospective homebuyers may be willing to take a chance to reach their goal, with 62% indicating they are waiting for prices and/or rates to fall before buying a home, down from 85% who said the same six months ago, according to Bank of America.

Major life events tend to prompt people to move, according to Skylar Olsen, chief economist at Zillow.

“The problem is, right now, the finances block people from following that major fundamental change,” Olsen said.

For example, they may choose to struggle through a long commute to a new job while they wait for lower home prices, she said.

That may be poised to start to shift in 2024, but it will likely be very gradual, Olsen said.

Zillow’s forecast has called for mortgage rates improving very slowly, which means the number of new listings may also improve very gradually, she said.

Prospective buyers who are hoping for a big drop in home prices will be disappointed, Olsen said.

Rather than a dramatic decline, there will likely be slower home price growth over the next five years, she said, barring any big changes to current dynamics.



Source link

You might also like

Thursday’s big stock stories: What’s likely to move the market in the next trading session

Morgan Stanley’s highest conviction picks into earnings

Student loan forgiveness paused under a popular repayment plan. Here’s what to know

Share30Tweet19
Previous Post

Junior doctors set to stage the longest strike in the history of the NHS as talks break down

Next Post

NYC Mayor Adams to launch lithium-ion battery-charging pilot program in early 2024 for delivery workers to safely charge bikes

Tom Robbins

Tom Robbins

Recommended For You

Thursday’s big stock stories: What’s likely to move the market in the next trading session
Investing

Thursday’s big stock stories: What’s likely to move the market in the next trading session

July 24, 2025
Morgan Stanley’s highest conviction picks into earnings
Investing

Morgan Stanley’s highest conviction picks into earnings

July 23, 2025
Student loan forgiveness paused under a popular repayment plan. Here’s what to know
Investing

Student loan forgiveness paused under a popular repayment plan. Here’s what to know

July 23, 2025
This oil ETF is showing signs of a possible turnaround, according to the charts
Investing

This oil ETF is showing signs of a possible turnaround, according to the charts

July 23, 2025
Next Post
NYC Mayor Adams to launch lithium-ion battery-charging pilot program in early 2024 for delivery workers to safely charge bikes

NYC Mayor Adams to launch lithium-ion battery-charging pilot program in early 2024 for delivery workers to safely charge bikes

Related News

JMP Securities upgrades Snap amid app revamp, says shares can rally 70%

JMP Securities upgrades Snap amid app revamp, says shares can rally 70%

October 23, 2024
JPMorgan wealth CEO Erdoes says bank knew of Epstein sex accusations in 2006, USVI alleges

JPMorgan wealth CEO Erdoes says bank knew of Epstein sex accusations in 2006, USVI alleges

April 12, 2023
OKAI Stride e-bike hits 0 (Save 0), Greenworks power tool combos now 50% off, more

OKAI Stride e-bike hits $930 (Save $670), Greenworks power tool combos now 50% off, more

January 30, 2024

Browse by Category

  • Business Finance
  • Crypto
  • Industries
  • Investing
  • Markets
  • Opinion
  • Real Estate
  • UK

London Wallet

Read latest news about finance, business and investing

  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2025 London Wallet - All Rights Reserved!

No Result
View All Result
  • Checkout
  • Contact
  • Home
  • Login/Register
  • My account
  • Privacy Policy
  • Terms and Conditions

© 2025 London Wallet - All Rights Reserved!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?