2024 was supposed to be the year home sales bounced back, but mortgage rates and inflation had other plans.
Buyers were hopeful, but the rates kept changing, preventing the market from fully recovering.
Even though there was a small rally at the end of the year, home sales stayed low, like they were during the recession.
At the start of the year, things looked good. Mortgage rates had settled around 6.6%, which gave people hope for a spring buying season.
Sales started picking up in January and February, with home sales reaching an annualized rate of 4.4 million.
But then, mortgage rates went up again, rising to 7.2% by May, and home sales dropped.
June showed that the spring season didn’t live up to expectations.
Things didn’t improve much over the next few months, even though mortgage rates fell in September.
By the end of the year, home sales showed some improvement, but they were still far below the usual numbers.
The reason for the up-and-down mortgage rates?
Some experts think it’s because of a strong job market, inflation, and political issues that made mortgage rates unpredictable.
There is hope for 2025 though.
With some signs of buyers returning to the market, things might turn around if mortgage rates drop and more homes become available.
However, experts warn that economic uncertainty could stop the housing market from fully recovering.