New Yorkers Hold Out Hope That Mortgage Rates Will Fall in 2024

Guess what? You might just be in luck when it comes to getting a lower mortgage rate in 2024.

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According to a recent survey conducted by Fannie Mae, there is a glimmer of hope among New Yorkers that borrowing costs for home loans might go down over the next 12 months.

The survey revealed that about 31% of people think mortgage rates will decrease, which is a more positive outlook compared to the last month. Interestingly, homeowners and higher-income people were even more optimistic about rates dropping. In fact, for the first time in the history of Fannie Mae's National Housing Survey, more homeowners are expecting mortgage rates to go down than they are up.

The current rate on a conventional 30-year fixed-rate mortgage is around 6.62% and that is down from 8% in November, according to Fannie Mae. So there's already been a big decrease in rates and that's probably what's giving people hope of homeownership.

You might be wondering why these mortgage rate predictions matter and how they could impact you. Well, for anyone who wants to own their own home and anyone who is a seller or who wants to refinance, the big question for 2024 is how low mortgage costs could potentially go. Federal Reserve officials have hinted at the possibility of cutting their benchmark rate multiple times in 2024 and experts are hopeful it will happen.

Even though a lot of people are excited about the possibility of mortgage rates going down, only 17% of consumers in the Fannie Mae survey said they think it's a good time to buy a house.

The median price of a home in the U.S. reached over $408,000 in November, which is a 3.6% increase from the previous year. The high cost of homes has kind of squashed the excitement of potential buyers.

But here's the catch, even if expectations for lower rates are only modestly higher, it could encourage sellers to put their homes on the market. High mortgage rates were the biggest reason why it was not a good time to buy a house. With better mortgage rates, maybe more homeowners will find an incentive to list their homes for sale.

Housing experts think mortgage rates will drop lower this year. Thomas Ryan is a property economist at Capital Economics and he says, "Mortgage rates will almost certainly be much lower this year."

So, New Yorkers, keep your fingers crossed, because 2024 might just be the year when mortgage rates finally work in your favor!