Mortgage interest rates are a
crucial factor in the St. Louis and St. Charles County, Missouri real estate
markets, as they directly impact both homebuyers and homeowners. While rates at
the end of 2023 rates held steady, the current trend suggests rates in 2024
could be on a downward trajectory- good news for those looking to buy a home or
refinance their existing mortgage.
What Mortgage and Real Estate Experts are Saying About 2024 Mortgage Rates
According to Forbes, experts are predicting that mortgage interest rates will continue to decrease over the next few years. This positive prediction is supported by Fannie Mae, which recently released a report forecasting that mortgage rates will drop below 6% by the end of 2024. Meanwhile Danielle Hale, chief economist at Realtor.com, said “Our modeling suggests a gradual, steady decline” when discussing 2024 mortgage rates,
These predictions are based on several factors, including slower economic growth, lower inflation, and a more stable global economy. These factors are likely to contribute to a decline in interest rates, which will benefit both homebuyers and homeowners.
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| Source: https://www.wsj.com/buyside/personal-finance/will-mortgage-rates-go-down-in-2024-predictions-16fffcaa |
The Impact of Lower Interest Rates
The impact of lower interest rates
on the real estate market could be significant. Lower rates make it more
affordable for buyers to purchase a home, which could lead to an increase in
demand for housing. This could, in turn, push up home prices a bit in certain
areas. Homeowners who are looking to sell their homes could benefit from this
trend, as they may be able to sell their homes for a higher price than they
would have in a higher interest rate environment.
Lower interest rates also make it more affordable for homeowners to refinance their mortgages. This could be especially beneficial for those who are struggling to keep up with their monthly mortgage payments. By refinancing at a lower interest rate, homeowners could potentially lower their monthly payments, reduce the total amount of interest they pay over the life of their loan, and even shorten the term of their mortgage.
Other Factors That Could Affect the 2024 Real Estate Market
It’s important to keep in mind that
interest rates are just one factor in the real estate market, and other factors
such as job growth, inventory levels, and consumer confidence also play a role.
While the prediction of lower interest rates is positive news, it is important
to remain cautious about the future of the real estate market. Experts predict
that slower economic growth, lower inflation, and a more stable global economy
will contribute to a decline in interest rates. However, unforeseen events such
as natural disasters, political instability, or global economic shifts could
still impact the market.
In conclusion, the trend of decreasing mortgage interest rates is positive news for both homebuyers and homeowners. It could boost the housing market, make it more affordable for people to buy and refinance homes, and even lead to an increase in home values. However, it is important to keep in mind that interest rates are just one factor in the real estate market, and other factors can also impact the housing market. Homebuyers and homeowners should carefully consider their individual circumstances before making any decisions.
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Have questions or need advice about
St. Louis or St. Charles County real estate? The Boehmer Team are highly
qualified, experienced, and available for you. Contact us to assist you with buying, selling, building, or investing in real estate.
Sources:
https://www.freddiemac.com/research/forecast/20240122-us-economy-continues-expand
https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/
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