May Market Update 2024

 

In April, mortgage rates rose nearly a half a percentage point due to changing Fed expectations, hitting the highest level yet in 2024. The Fed has expressed that inflation is taking longer to settle at 2% than originally expected, so higher rates will likely be here for most — if not all — of 2024.

 

Demand is still high relative to supply, even though inventory is growing. However, as prices increase, the buyers who haven’t been priced out of the market become pickier, and fewer but pickier buyers creates an overall slowdown. The market was showing signs of a more normal spring with sales and inventory rising, but the recent rate increases dropped national sales last month, which is almost never seen in the spring. Mortgage rates above 7% will naturally give potential buyers and sellers pause before entering the housing market.