Housing Market Sees Mixed Signals as Mortgage Rates Drop and Home Prices Rise

While mortgage applications rise and rents decrease in some cities, the supply of existing homes is expected to remain strained in 2024 and home prices continue to hit record highs.

Mortgage rates have fallen to a 10-week low, sparking a rise in mortgage applications for the fourth consecutive week, although the volume of applications remains 19% lower than the same time last year.
Rents are decreasing in several cities, including Austin, Texas; Dallas, Texas; Orlando, Florida; Portland, Oregon; and Phoenix, Arizona, making renting a more affordable option for many.
Despite a projected slight decrease in housing costs in 2024, the supply of existing homes is expected to remain strained, with a predicted 14% drop in inventory year over year.
Home prices rose 3.9% year-over-year in September, marking the third consecutive month of increases and pushing the index to the highest level ever recorded.
Rental prices are beginning to level off as residential construction has rapidly increased, boosting multifamily completions to their highest levels in the first two quarters since the 1980s.