2024 Mortgage and Housing Forecast

Spoiler Alert! Many experts, including economist from Fannie Mae and Mortgage Bankers Association are predicting that mortgage rates will be below 6% by the end of 2024 thanks to inflation cooling off.

We will also still be dealing with a serious lack of inventory. The markets should be improved from 2023, however the competition will remain strong and most likely increase. As mortgage rates move under 6%, we will see more people re-enter the market. In addition, it is in my opinion highly unlikely we'll see a "price correction" with homes in our area simply due to the continued lack of inventory and increased population (more on that in my video above).

For the scenarios I have prepared here, I'm using a home priced at $800,000 with 20% down payment. Rates are subject to change and are for example only. Results may vary depending on where you are considering buying and what your financial scenario looks like. Forecasted interest rates are based on projections from Fannie Mae's January 2024 forecast and are NOT guaranteed - they are only a projection. If you would like me to prepare scenarios based on your personal data or for your client, please reach out to me! I'm happy to help.

Here are some strategies to help you in 2024!

Don't wait for lower rates to buy! If you find a home that you can afford and would like to make an offer on, do it now before rates go down. Check out the Cost of Waiting - Total Cost Analysis and PDF with examples overtime. ⏩

  • You will have less competition.
  • You will start paying down the mortgage now and enjoying appreciation now.
  • The home will cost more with appreciation (and potential bidding war) when rates are lower.

Be prepared to Offer Above the List Price. Bid above the list price and negotiate the seller to buy down your interest rate. With forecasted appreciation, you may be surprised how quickly one may break-even on the "cost" of bidding over the list price vs. chasing a higher sales price while waiting for interest rates to come down. ⏩

Make your best presentation with a Digital Offer. I personally contact the listing agent to review your offer (with your permission, of course). The listing agent will receive a text with your digital preapproval for their review as well as an email. ⏩

Consider making a cash offer with NAF Cash Program. We have a cash buyer program that allows you to have a cash offer presented on your behalf. Sellers prefer cash offers as there are no financing contingencies, and you can close much faster! Once the cash offer has closed, you buy the home back from NAF Cash with the same terms. This also works great if you have a home that you need to sell before buying your next home. ⏩

If you do have a home to sell, you probably have enjoyed appreciation with your home values. These funds (or other funds that you may have considered to use for down payment) may be used to restructure debt or buy down the interest rate to make your payments more affordable. Check out Selling and Buying Made Easy. ⏩

Rent vs. Buy. Your mortgage payment may be initially higher than your rent payment, however the long-term benefits of building wealth through homeownership is very clear with this report. ⏩

5 Year Rate Pledge. After you close your mortgage serviced by New American Funding, should mortgage rates drop to where you want to refinance, New American Funding will waive their lender fees. ⏩

If you would like to prepare a plan for buying your next home or create a strategy to help your home buyers, please reach out to me.

I hope you have a wonderful 2024!

Best regards,



"Communication was exemplary! She went above and beyond to help make sure this was a successful transaction for all parties involved. Looking forward to many more transactions with Rhonda!"

deanna f

"Process was very smooth and very informative throughout, which I appreciate greatly as I had a ton of questions!"

vincent r

"To begin, we were moving across country with short notice and the seller required a 30-day closing. I haven’t experienced getting a mortgage in over 30-years…OMG it’s changed a lot! I am not even exaggerating when I say that we would not have accomplished this without the exceptional experience that Rhonda brought! After we signed and locked the 2023 high interest rate, days later there was a significant dip in the rates and Rhonda relocked us at the lower rate! What an unexpected gift. I don’t know anyone else who would go out of their way to do that for a client. Not only is she a Pro, but she’s a joy to work with and also guided us through with lots of patience. 5-STARS all the way!"

mark fernandez