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USA Today
The Federal Reserve's announcement of no immediate rate changes and three cuts before the end of the year is unlikely to bring relief to homebuyers.
"The mortgage market already incorporated that," Lawrence Yun, chief economist at the National Association of Realtors® told USA TODAY. "Consumers who may be looking for (rates of) 3%, 4%, I don't think it's going to happen, or even 5%. Consumers need to recognize the new normal."
The average rate on a 30-year fixed mortgage stood at 6.9% on Wednesday afternoon and is unlikely to dip below 6% before the end of the year.
Despite relatively high mortgage rates, there's still strong competition for small and mid-sized homes, Yun said.
"Multiple offers are still happening on mid-priced homes and below," he said, "implying there's not enough supply."
But some positive signs have emerged for homebuyers.
Yun said the housing supply is slowly picking up in 2024. "Spring buying season or even summer buying season, consumers will have more choices this year compared to last year," he said, adding that, going forward, even more relief could come in 2025 when "mortgage rates could be closer to 6%."