Fannie Mae Expects Rates To Be Under 6% By The End Of This Year

Last week, Fannie Mae released a report. The main takeaway is that they are expecting the number of housing unit sales to increase. Thank goodness! I don’t know exactly where the inventory is going to come from yet, but that is the prediction.

Interest Rates Will Be Dropping

The other notable piece of information is that they are expecting to end the year with interest rates at 5.9%. So it looks like interest rates will continue going down this year. I’ve heard over and over again that when we hit interest rates in the 5% range, it is what will trigger the real estate market.

Should You Wait to Buy a Home?

I want to reiterate: I do not see it as a great idea to wait for that 5.9% to happen before you buy a home. Why? Because it is going to pull everyone into the market, which is going to drive the prices up.

I know that I sound like a broken record on this. But it’s historically what happens. Someone, please explain to me how it would happen any differently!

Home Prices Will Likely Go Up

I wanted to throw this out there again – it’s so important to understand. Keep it in mind: yes, it looks like we are going to see rates drop again this year. But waiting for that to happen could cost you a bunch of money in higher prices just because of supply and demand. If/when a bunch of people flood into the market, it’s going to drive prices up.

If you want to read the full report from Fannie Mae, you can find it here: Economic Developments – February 2024.

Also, feel free to reach out to me any time if you have questions or would like personalized recommendations. I’m always here to help with your home financing needs!