Housing Market Thoughts for 2024

Everyone has different opinions on what is going to happen in 2024 but here are some thoughts. The biggest issues are interest rates and housing inventory. Those will still be there in 2024.

Mortgage interest rates have dropped in the last two months. After seeing some of the highest rates in years, rates have started to drop. How far they drop in 2024 no one really knows. Right now investors expect the Fed to start dropping rates in March but that may change as we get more economic news in the first quarter of 2024. The other part that no one really knows is how far they will drop. Some say low 6’s, I’ve also heard mid 5’s. After the last two years, I really hate to even guess! As long as we can see rates continue to decrease, it’s a good thing.

Housing inventory is the other piece of the puzzle. Most analysts still expect housing inventory to be tight through 2024. Many homeowners do not want to trade a 3% interest rate for a 6.5% rate unless they have to. The other part of this is as rates come down, you will see more people start looking for homes again and that could cause more multiple offers and make it harder to find a home.

With low housing inventory, don’t expect to see home prices decline. Most experts expect to see home prices increase 3-4%, especially if inventory is low and rates continue to decline.

My suggestion is more of the same – if you are looking at buying a home in 2024, start looking soon! The more rates drop, the more chance of multiple offers making it harder to buy. You can always refinance your mortgage. Remember the new saying, “you date the rate, you marry the house”!

Leslie Vanderwerf,  NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website

Written By

Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

Related Posts

My new favorite outlet tester: the Triplett ET100

🖨 Print Article Every home inspector uses an outlet tester throughout the entire home inspection. The most diligent home inspectors will test every outlet they can access to ensure the...

Weekly real estate market update 2/16/24… new listings take a big jump up

🖨 Print Article New listings took a big jump up this week after the Super Bowl, which is the ‘official’ start of the spring real estate season. What is even...

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!


Blog Categories


Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.