While consumer price inflation rose 3.4% in December, the Federal Reserve is still expected to cut interest rates by at least three times in 2024.
The number of people who moved between states rose from approximately 7.9 million in 2021 to approximately 8.2 million in 2022.
The unemployment rate held steady at 3.7%, and the latest average hourly earnings rose by 4.1% to $34.27. All in all, jobs are being added, raising long-term housing and commercial real estate demand.
Mortgage interest rates remained nearly flat as the new year began, increasing from 6.62% from 6.61%.
Mortgage interest rates continued their decline this week and have hit the lowest level in six months since May of 2023.
NAR released a summary of existing-home sales data showing that housing market activity increased by 0.8% from October 2023.
Mortgage interest rates continue to incrementally decline.
The key determinant impacting housing demand in these areas is the influx of additional buyers resulting from the decline in mortgage rates next year.
Even more home building will be needed with the housing shortage persisting in most markets.
The Fed indicated yesterday that they will hold the Fed Funds Rate steady for now and cut rates three times in 2024; NAR forecasts that mortgage interest rates will average 6.3% in 2024.
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