Home Sweet Equity: Fannie Mae’s Bold Predictions for 2024

By Mark Callender

Hello, my name is Mark Callender and I am a licensed real estate agent with RE/MAX Results. Because I have been helping families buy and sell their homes for more than 18 years, I am now helping their children to buy their first homes and their parents to downsize. No matter the direction you’re moving, my goal is to make the process as calm and enjoyable as it can be.

Will home prices start to drop or rise? Today, I’ll explore the forecasts and insights provided by Fannie Mae regarding the future of home prices and interest rates.

According to Fannie Mae, there will be a rise in home prices over the next five years, with a potential equity of $72,000 on a $400,000 home purchase today. One hundred economists at Fannie Mae agree that interest rates will likely decrease while home prices increase. For sellers, this forecast means the opportunity to move without facing exceptionally high interest rates, as current rates average around 3%.

Despite many sellers hesitating to move due to the fear of rising interest rates, recent reports indicate FHA loans are below 6% and conventional loans are just above 6%. As a result, potential buyers are encouraged to take advantage of the market conditions.

For those considering a home purchase, the forecast suggests rising home prices, emphasizing the importance of taking action sooner rather than later. The prospect of gaining $72,000 in equity over five years on a $400,000 home makes immediate action appealing.

The message is clear: home prices are expected to continue rising significantly, making waiting less advantageous for buyers. If you have any questions about the future of interest rates and home prices, feel free to call or email. I’m happy to help.