Mortgage rates tick lower after jobs data
The national average for 30-year, fixed-rate mortgage ended down 0.03% to 7.08% today*.
The Job Openings and Labor Turnover Survey (JOLTS) came in a bit softer than expected. Experts predicted the monthly data would come in at 9.3 million open jobs, but the report came in at 8.733 open jobs. The softer report drove the bond market lower, which lead the mortgage market to end the day lower. The jobs report was at the lowest reading in more than two years.
How could the U.S. housing market shake up in 2024?
Business Insider reviewed recent predictions from Redfin on the 2024 housing market, and has several takeaways as to how the market could shift in the coming new year.
First, the market has a chance to transition to more of a buyer’s market in 2024. Redfin’s chief economist, Daryl Fairweather, said, “We’re starting to see a shift toward a buyer’s market as pandemic driven inflation takes its last gasps, mortgage rates come down, and more people list their homes for sale.”
It’s also very likely that home sales will pick up in 2024, or at least out pace the 2023 market. Fairweather stated, “Home prices will still be out of reach for many Americans, but any break in the affordability crisis is a welcome development nonetheless.”
The report went on to state that we could see reverse migration of sorts. This means that remote workers could be lured back into the office, and move from outlying areas back into the cities.
Which generation is the most housing obsessed?
A recent survey from Bank of America showed that millennials are the most housing-obsessed generation. In the survey, almost 60% of millennial respondents said they think that homeownership is more important than it was during their parents’ generation. They also cited homeownership as the number one signal of financial success.
Bank of America head of consumer lending, Matt Vernon, said, “While it’s tricky to draw a direct comparison between whether millennials or their parents face more barriers to homeownership given the numerous variables at play, it’s fair to say that millennials are faced with their own unique set of challenges.”
Inaccessibility in the form of elevated housing costs is likely driving millennials to feel that buying a home is so important. To this point, Vernon went on to say, “While their parents and grandparents may have been able to do so in more favorable markets, millennials may perceive that building equity through the purchase of a home is especially important as inflation continues to keep living expenses high.”
* National average rates accurate as of 12/5/23 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
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