Easing market pressures may open doors for homebuyers in 2024 as mortgage rates fall

SEATTLE (KOMO) — With mortgage rates backing off their highest point in decades, many wonder if they will finally be able to afford to buy a home.

The National Association of Realtors expects that 2023 was the worst year for home sales in more than 10 years.

"When we look at the housing market in 2023, it was incredibly difficult, especially for first time homebuyers," said Jessica Lautz, Deputy Chief Economist & VP of Research, National Association of Realtors.

But market pressures are easing and inflation is cooling.

The Federal Reserve could cut interest rates three times this year. Mortgage rates are hovering around 6.6%, down from 8% in October.

"We do expect in 2024 that mortgage interest rates will continue to decline. They're down considerably. It opens up the affordability box for many potential home buyers," said Lautz.

According to Seattle-based Redfin, home prices nationwide were up 6.4% from December 2022. In Seattle, they're up 3.9%.

Sellers are also posting more listings. Experts said putting down 20% of the home's value is a good goal.

Be sure to shop around with different lenders for the lowest mortgage rate.

"Make sure that you have your financial house in order, as you go into this scenario, paying down as much debt as you can and saving as much as you can," said Lautz.