Forecasts are a mixed bag , but most expect prices to either remain flat or continue cooling by 1% to 10% from 2022's highs.
However, with the economy expected to cool and possibly dip into a recession , many recent forecasts expect rates to drop to 6% or below in 2024, including a Fannie Mae projection of 5.2%.
With U.S. home prices dropping and mortgage rates projected to dip sometime in 2024, homebuyers might be wondering if they should wait until next year to land a more affordable deal.
"Returning to mortgage rates of 3% or 4% is not going to happen, in my view," says Yun, who points out that historically rates have been higher.
Plus, if "mortgage rates go back down to that level, people can always refinance their mortgages," says Yun.