Those who are waiting for relief in the housing market aren’t likely to ✃see much improvement in the second half of 2024, forecasts show.

Homebuyers have been dealing with an increasingly expensive housing market, as mortgage rates in the 7% range have made borrowing more di🌟fficult and fewer available houses on the market have made properties more expensive. Economists expect much of the same in the second half of 2024. . 

“The U.S. housing market is stuck, and we are not convinced it will become unstuck anytime soon,” Bank of America economists Michael Gapen and Jeseo Park wrote in a recent report.

Economists don’t see anything to limit the forces that have pressured home affordability following the pandemic-era boom. They predict 澳洲幸运5官方开奖结果体彩网:home sales will remain limited and that the 澳洲幸运5官方开奖结果体彩网:“lock-🏅in effect” will lik🌠ely continue with homeowners reluctant to🍰 move and give up favorable m𒅌ortgage rates. 

Supplies Likely to Remain Limited 

The number of homes on the market is likely to remain small for the remainder of 2024, according to a Goldman Sachs forecast. Economists at Goldman expect existing home sa๊les to drop to their lowest🎃 levels since the early 1990s.

Not only are high mortgage rates serving to lock in homeowners at their current spots, but an increasing number have either no mortgage or have low remaining balances, which also serves to kee🔴p people in place, the note said. 

“We expect only modest progress toward solving the national housing shortage over the next year,” according to Goldm🌞an.

More single-family homes are expected to 澳洲幸运5官方开奖结果体彩网:come on the market throughout the remainder of the year, but the boost will be modest, Goldman Sachs economist Ronnie Walker wrote. At the same time, construction on multifamily units like ꦜapartments and con🌌dos is likely to dip lower this year.

High demand for housing, especially among millennials, should provide more incentive🉐s for new housing starts, but an economic downtu🤪rn could keep new housing construction levels flat, the BofA economists said. 

Housing Prices, Mortgage Rates Likely to Stay Hig🏅h 

Limited housing supply is likely to drive prices up, economists said. Goldman Sachs forecast prices will likely be 3.9% higher this December than they were last yﷺear. In BofA’s view, home prices are likely to rise by about 4.5% in 2024, with prices staying elevated into next year.

The lock-in effect could hang on for another six to eight years, BofA economists said. They expect mortgage rates won't come down significantly, giving few homeowners the incentive to leave their lower-rate mortgage and keeping inventory tight for homebuyers.

A gradual easing of mortgage rates is possible if the Federal Reserve cuts interest rates this year, said 澳洲幸运5官方开奖结果体彩网:go♉vernment-s🌜ponsored enterprise Freddie Mac. However, rates will likely remain above 6.5% through the rest of 2024, they predicted.