The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun says, “In the second half of 2024, look for moderately lower mortgage rates, higher home sales, and stabilizing home prices.” Let’s dig into the details…

Lower Mortgage Rates

How much lower? The NAR predicts mortgage rates, which recently topped 7%, will stay above 6% in 2024, settling at 6.7% in Q3 and decreasing to 6.5% in Q4. Two major players in the mortgage world share a similar outlook; the Mortgage Bankers Association (MBA) predicts a rate of 6.5% by the end of 2024, while Fannie Mae forecasts this year will close with a rate of 6.7%.

Most experts see steady days ahead for mortgage rates. Freddie Mac’s Chief Economist Sam Khater says, “Expect rates to continue to come down over the summer months, bringing additional homebuyers back into the market.” economist Jiayi Xu adds, “Peak mortgage rates are likely behind us.”

Higher Home Sales

The NAR’s Yun says, “Job gains, steady mortgage rates, and the release of inventory from pent-up home sellers will lead to more sales.” Fannie Mae thinks 2024 home sales will stay flat, mirroring 2023 numbers, while the MBA foresees a slight uptick.

The North Texas housing inventory is at its highest level in over a decade. Buyers are picking up the properties at an increased pace; in DFW, homes are on the market (from start to final close) for an average of 76 days.

Stabilizing Home Prices

In June, Yun said, “Supply and demand movements suggest easing home price appreciation in upcoming months.” With a slight rise on the horizon, the NAR predicts the national median existing-home price will increase to $405,300 in 2024 and to $412,000 in 2025.

DFW home prices, however, are increasing slower than the national average. S&P CoreLogic reports DFW home prices rose 3.4% from April 2023 to April 2024. Nationally, that rise was 6.3%. And the price increase in DFW was considerably lower than in other major metropolitan areas. Chicago had a year-to-year home price increase of 8.7%, New York rose 9.4%, and home prices in San Diego jumped 10.3%.

Experts agree: now is a great time to buy a home in the DFW area. We can help make that happen. Contact a member of the Decker Group online or call us at (972) 591-3097.