I believe rates will settle by the end of next year in the low 5% range, where it will stay for the near future. The days of what felt like "free money", sub 4% mortgage rates seem like a distant memory that won't make a return anytime soon if at all. The lower rates will be enough for sellers itching to make a move to feel more confident shedding their already low mortgage to trade into a new home. This will in turn build up inventory offering more variety for house seekers. It's badly needed, just look at the chart below. Very few homes for sale right now.
We can test my predictions and the Fed's strategy in just a few short months. I am so excited about my pipeline for next year—for the first time in a long time, there are a lot of houses to be introduced- look out for fabulous listings and excellent buyers ready for the next chapter! Speaking of, congrats to Kevin and Phi who closed on their new home this week. A heartwarming holiday story.