I’m going to break down the housing market forecast for the second half of 2024 in Metro Detroit and show you how to predict future mortgage rates. Yes, mortgage rates are predictable as long as you have the formula, and I’m going to show you how! 🤩

Housing Market Forecast and Predictions 2024

As we move into the second half of 2024, it’s important to understand what might happen in the housing market. Knowing the trends can help you make better decisions whether you’re considering buying or selling a home. In this article, we’ll review expert predictions for home prices, mortgage rates, and home sales for the rest of the year. To make it easier, you may want to bookmark the following post. Also, you can request our Real Estate Insider Newsletter.

Home Prices Are Expected to Rise Slowly

Experts expect home prices to keep rising but at a steadier pace. The graph below shows the latest predictions from seven of the most trusted sources:

Experts believe home prices will keep rising, but not as quickly as they have. One of the main reasons for this is the low supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:

“Home prices are going to continue to go up because we don’t have enough housing inventory.”

For buyers, the good news is that prices aren’t expected to skyrocket as they did during the pandemic. They will rise more gradually. If you’re considering buying, getting into the market sooner could save you money. Plus, experts believe your home will likely increase in value after you buy it. The housing market forecast for homebuyers is favorable in Metro Detroit.

Macomb and Oakland County Home Prices Trends

Median and Average Price Year Over Year

Mortgage Rates Are Forecast to Come Down

Good news for buyers and sellers is on the horizon: mortgage rates are expected to decrease slightly. According to forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and NAR, this reduction could significantly affect buyers’ monthly payments. For sellers, lower rates can attract more buyers, helping to sell properties faster and potentially at higher prices. This shift might also encourage those hesitant to sell due to high rates to reconsider.

Learn How to Pedict Mortgage Rates Today and In the Future

First, you need to know that the Fed doesn’t set mortgage rates. However, it does set interest rates and policies for bonds and securities that do affect mortgage rates. If you didn’t know, you can predict mortgage rates, and I’ll show you how.

You need to know how mortgage rates are calculated, and Wall Street is in the driver’s seat here. The most important trend to watch is Mortgage-Backed Securities. The MBS Gap has been 2.646% on average for the past two weeks. The 50-year average is 1.72%. The graph below is an example of what mortgage rates could be and the current mortgage rate.

I update Today’s Mortgage Rate: What’s Driving the Change daily. We’ll review the morning prediction, and I update you with the current mortgage rate in the afternoon. If you want to save money, then keep up to date. To make it easier, request our Real Estaste Insider and receive the updates via email or text.

What My Crystal Ball Predictions for Q3 2024 for Mortgage Rates

I track economic trends and share the weekly data and predictions late Sunday night. You can review “Navigating Mortgage Rates: Weekly Update and Predictions.”

Inflation CPI is down to 3%, and the Fed’s preferred measurement for inflation is the PCE, which is also down to 2.6%. Unemployment is up 4.1%. So far, we are on track for the first interest rate cut in mid-September, which will lower the bond and securities rates. We could see the mortgage rates base shift to 6.7% or lower after the August inflation reports are released by mid-August. That means the predictions are favorable for base mortgage rates at 6.5%. Remember, your rate could be much lower. I don’t calculate FICO Scores, down payment, or what you may pay a lender to buy down the rate. The good news, rates will be lower.

Home Sales Are Projected to Hold Steady

Home sales in 2024 are expected to remain stable including Metro Detroit, with a slight potential increase. The housing market forecast for sellers in Metro Detroit puts you back in the Driver’s Seat. It will remain a seller’s market over the next six months. The average forecasts from Fannie Mae, MBA, and NAR suggest around 5 million home sales for the year, a slight rise from the 4.8 million homes sold in 2023. Lawrence Yun, Chief Economist at NAR, explains why:

Job gains, steady mortgage rates, and inventory release from pent-up home sellers. This means more opportunities for people to move and find new homes.

Macomb and Oakland County Trends

Home Sale, Days on Market and Month Supply of Homes ~ Year over Year

Let’s Decode the Housing Market Together! Let’s Connect ⤵️

Wow 😮, there’s a lot to consider! Whether looking to buy a new home or considering selling in Metro Detroit, keeping up with the latest housing market trends is essential. After all, these numbers impact your decisions. Let’s simplify the process together. Schedule a Zoom call with me, and we’ll review the data. I’ll share my screen so you can see the market insights clearly and feel confident about your next steps.

Final Insights

Navigating the housing market in Metro Detroit requires staying updated with the latest trends and forecasts. As we move through 2024, expect moderate increases in home prices, slightly lower mortgage rates, and stable home sales. Don’t hesitate to reach out if you have any questions or need assistance with your real estate needs. Together, we can make the most of these market conditions and achieve your housing goals.