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What will happen to home prices if mortgage rates fall? | CBS News

What will happen to home prices if mortgage rates fall? | CBS News

In December 2023, the Consumer Price Index (CPI) rose by 0.3%, bringing it to 3.4%, although the Federal Reserve aims for inflation to head towards 2.0%. Many expect the federal funds rate to stay at 5.33% this month, with a potential decrease later in the year. But what does this mean for the housing market and home prices? If mortgage rates decrease in 2024, experts have varying predictions. Here’s what they anticipate:

  1. Higher Affordability Attracts Buyers: When mortgage rates drop, buying a home becomes more affordable. This could lead to larger loan qualifications and more manageable monthly payments for homebuyers. As a result, demand for homes may surge, especially among first-time buyers and those without low mortgage rates, creating increased demand before a corresponding supply increase.
  2. Rising Demand Drives Up Prices: Experts agree that a drop in interest rates will likely increase demand, subsequently driving up home prices. The imbalance between demand and supply could lead to further price increases, although lower borrowing costs resulting from reduced interest rates might offset some impact.
  3. A Good Year to Buy a Home?: For those planning to keep a home long-term and can afford it, 2024 may be a good time to buy. Homeownership can significantly contribute to net worth. However, timing is crucial, as experts suggest acting sooner rather than later. Waiting for interest rates to decrease may not always be the best strategy.

In summary, while a potential decrease in mortgage rates in 2024 may make homeownership more affordable initially, it could also lead to increased demand and, subsequently, higher home prices. Whether it’s a good time to buy a home depends on individual circumstances and the need for utility that comes with homeownership………full-loaf-600x400-1-e1700879832480 What will happen to home prices if mortgage rates fall? | CBS News[read more]

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Rising-Dough-e1700879911412 What will happen to home prices if mortgage rates fall? | CBS NewsHow do changes in interest rates and their impact on the housing market relate to broader economic trends?

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stonestreetcoffee.com ☕️ **Discover Stone Street Coffee Company - Your Coffee Haven!** Today's Dough readers, if you're on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today's Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street's commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

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