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Mortgage Rates Down for Fifth Straight Week

Monday, May 20, 2024   /   by Matthew Lawson

Mortgage Rates Down for Fifth Straight Week

As we enter the final few days of 2023 it’s time to reflect on the past 12 months and look forward to the New Year. Like most I look back at the last year and reflect on how I’ve grown, but also how I can grow and improve both as a person and in business in the year ahead. In Real Estate it can be difficult to give predictions of the coming year with market fluctuations, inflation, and interest rate volatility, but we’re going to do our best to look ahead at what we can expect.

First, I want to thank the families and friends that entrusted me with their real estate needs this year. This year was a challenging one for many with interest rates reaching 8% at their peak, so I know the decision to move did not come lightly for many. I cannot thank you all enough for your support and trust in my guidance this past year.

Second, I want to congratulate those that made the decision to move in 2023, even if my team didn’t get to assist you in your transition. With interest rates one the decline and more expected cuts in the coming 12 months those that made the tough decision to move this past year should be able to look forward to a refinance and massive monthly savings. Let’s also not forget, equity growth in the coming year!

This past year the real estate market across most of the country was either at a standstill or on a slight decline. Many of the “Dooms Dayers” predicted massive market crashes and equity declines in 2023, and that just didn’t happen. Surprise, surprise. Although some areas were hurt more than others, our local market here in NC/SC didn’t fluctuate all too much. Homes did sit a bit longer than usually, but even then, the average Days on Market (DOM) was still less than 45 days. In some more desirable school districts, the average DOM was less than 30 days, meaning sellers retained overall control of their home’s values. Home values did fluctuate some, but the overall average through the entire year kept our market at .2% growth on the year. A far cry from the 10-20% growth in previous years, but even further from the huge “crash” predicted by some.

With interest rates on the decline, dropping a full point since the end of October to 6.67% (per Freddimac.com), market activity has increased considerably in what is traditionally the slowest time of the year. Showing activity is up over 20% in the last 30 days and mortgage applications are up approximately 13% in the same amount of time. Mortgage rates are expected to drop .75% over the next year which is speculating that we could see mortgage interest rates in the mid to low 5% range by fall of next year. With this expectation many news outlets and popular finance guru’s have changed their tunes and predicting a stronger real estate market in 2024.

Next year is going to be an interesting one with what is likely to be one of the most tumultuous presidential elections in recent history. With the expectation of wild stock market activity and the reduction of the federal funds rate, it can be expected that equity growth should be in the ballpark of 3-6% next year. Of course, this is means to be seen, but all the data and predictions are pointing more towards small gains than market decline.

We’ll continue monitoring the market daily here at Briggs American Homes to best serve our clients and provide the most up to date insights possible. If you have any questions about real estate, the market, or just want to discuss buying, selling or renting, please don’t hesitate to call us directly at 980-250-2795.

Happy New Year!

Briggs American Homes at Real Broker, LLC
Matthew Lawson
5960 Fairview Rd Ste 400
Charlotte, NC 28210

Based on information submitted to the MLS GRID as of 6/13/2024 4:56 PM CST. All data is obtained from various sources and may not have been verified by broker of MLS GRID. Supplied Open House Information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. Some listings have been excluded from this website.
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