Hello Home Buyer.
It's almost 2024 so let's talk predictions for the upcoming year.
Mortgage Rates Will Drop To 4.25%
Since November 1, 2023, mortgage rates have been on a win streak. We're at 9 straight weeks of falling rates. For the last time that happened, scroll down to the Know Your Numbers section. It's historic and the rates have no reason to stop the slide now. We did a complete breakdown on the website if you're into data and statistics. Or, if you just want to know how the movie ends, we're calling for 4.25% mortgage rates by mid-summer (and yours truly has a pretty good history of getting this right).
The FHA Will Mortgage Insurance Premiums
In Q4, the Federal Housing Administration (FHA) made its annual report to Congress which revealed the agency's cash buffer has 5x more money in it than required by law. The FHA already lowered mortgage insurance premiums once in the last 12 months. We expect they'll do it again. Home buyers with FHA-backed mortgages will see homeownership get more affordable and attainable in 2024.
Congress Will Finally Help Home Buyers
Last year, as mortgage rates spiked and home supply shrunk, Congress bypassed first-time home buyers. None of the six first-time home buyer bills passed into law which means no new tax credits, no new cash grants, no new down payment assistance. In 2024, we expect Congress to reverse course and the most likely bill to pass into law is The HELPER Act - a 100% mortgage for teachers and first responders. The bill has huge bipartisan support - 107 co-sponsors in the House and 15 in the Senate - and could pass as soon as this summer. We're still tracking other bills, too, including the $15,000 first-time home buyer tax credit and the $25,000 cash grant for first-generation buyers. We'll report on news as we see it.
What's Your Biggest Question?
Looking forward to 2024, if there's one question about owning a home in the next 12 months, what would it be? Hit reply and let me know.
Happy Homebuying!
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