Tim Rood on FBN: What's Ahead for Housing in 2024?
The 30-year mortgage interest rate clocked in at 6.62% on January 4, down significantly from last October, when rates hit 8%. Tim Rood, SitusAMC's Head of Government and Industry Relations, spoke with Neil Cavuto on Fox Business News about what to expect from the housing market and interest rates in the year ahead.
Rood noted the parallels between this month and the same time a year ago, when 30-year mortgage rates hovered around the same range. "There was a lot of energy around purchasing... then rates went up to 8% and volumes dropped off halfway through the year," Rood said. "Now the emphasis is toward a declining interest-rate environment, so there isn't that buzzsaw waiting for prospective buyers in this market. (Rates) are likely to go down."
Inventories are up on a year-over-year basis, but still about half the historical average, as many owners remain locked into lower-rate loans. "About 80% of homeowners have rates below 5% -- it's staggering," he said.
Watch the interview above for Rood's forecast.