Mortgage rates are one of the crucial factors in determining overall economic stability and predicting homebuyers’ actions over the year. Expecting lower mortgage rates in 2024, economists expect to see more real estate transactions this year. It is yet to be seen whether the economist’s predictions could be true.

To further understand the communities’ point of view on this topic, Real Research, an online survey app, launched a survey on mortgage rates in 2024.

Highlights:

  • Expecting a low mortgage rate this year,  almost 5 in 10 believe, to some extent, this is a good time to buy a home.
  • 58.03% believe that the low mortgage rates in 2024 will enable sellers to list their homes for exorbitant prices.
  • 51.53% claimed that the potential economic recession in 2024 could increase mortgage rates significantly.

Mortgage Rate Predictions 2024

Economists have pointed out that they expect mortgage rates to reach below the 6% benchmark, creating an optimistic sentiment in the market. Expecting low mortgage rates in 2024, almost 5 in 10 respondents have claimed that this would be a good time to buy a home, to some extent.

Meanwhile, 26.40% of respondents disagreed, mentioning that this is not a good time to buy a home. The remaining 23.02% firmly believe that a low mortgage rate would prove to be the best time to purchase a house.

Is-this-a-good-time-to-buy-a-home
Figure 1: Is this a good time to buy a home?

Mortgage Rates To Decline in 2024

As the prediction for mortgage rates in 2024 has been laid down, economists expect it will increase the supply of houses as sellers may try to sell them at higher prices. The majority (58.03%) have agreed that it is highly likely that low mortgage rates in 2024 will encourage sellers to list homes for exorbitant prices. Meanwhile, 1.85% have mentioned that it is highly unlikely to happen.

Will-this-increase-the-selling-activity-of-the-real-estate-market
Figure 2: Will this increase the selling activity of the real estate market?

Will the Fed Raise Interest Rates?

The Federal Reserve System’s (Fed) rates also play an important role in determining the mortgage rate and economic sentiment for the financial year. 51.53% have pointed out that an economic recession would increase the mortgage rate significantly, and 32.73% believe that the rates will increase only slightly during the recession.

Will-recession-affect-the-mortgage-rates
Figure 3: Will recession affect the mortgage rates?

Methodology

 
Survey TitleSurvey on Mortgage Rates in 2024
DurationJanuary 24 – January 31, 2024
Number of Participants6,000
DemographicsMales and females, aged 21 to 99
Participating Countries Afghanistan, Algeria, Angola, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Benin, Bolivia,… Brazil, Brunei, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Chile, China, China (Hong Kong) China (Macao), China (Taiwan), Colombia, Costa Rica, Croatia, Czech Republic, Ecuador, Egypt, El Salvador, Ethiopia, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Greanada, Guatemala, Honduras, Hungary, India, Indonesia, Iraq, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Malaysia, Maldives, Maluritania, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar [Burma], Namibia, Nepal, Nicaragua, Nigeria, Oman, Pakistan, Palestine, Panama, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Sierra Leone, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.