Mortgage Rates on the Rise: What to Expect in December 2024?
According to recent data published on December 19, 2024, mortgage rates in the United States continue to remain elevated. Analysts note that recent changes in economic policy, along with fluctuations in financial markets, have significantly impacted the cost of borrowing for those looking to purchase a home.
Currently, average rates for 30-year mortgages hover around 7.5%, which is more than 1% higher than the same period last year. This significant increase makes it more difficult for many Americans to afford a home. Real estate experts predict that this trend may persist in the coming months if the economy shows weak performance and the Federal Reserve remains focused on combating inflation.
Consumer demand for housing has also decreased according to the latest report, affecting the real estate market. The rise in mortgage costs leads many potential buyers to delay their plans. Reluctance to take out loans at high rates may result in further market slowdown, which could impact home prices, buyers' confidence, and overall economic stability.
Despite the cooling of the housing market, some experts believe there may be comforting signs such as an increase in market supply. This could potentially slow down the growth of real estate prices, making housing more accessible for certain buyer categories. However, these are merely assumptions, and the future of mortgage lending remains uncertain.
In light of this situation, analysts urge potential buyers to be more cautious in their financial decisions and to closely monitor market conditions before making a decision to purchase a home.
