Everyone is feeling quite optimistic about the real estate market next year. Sellers are excited about what's to come, while buyers aren't quite sure what to hope for. Lower rates will help their bottom line, but could also send prices to increase if the market is flooded with more ready and able buyers.

This week, it was announced that the Federal Reserve would keep rates where they are, and there was also a hint that there could be up to three cuts next year. Strong economic indicators show the economy coming back into balance after 11 rate hikes since March of 2022. The rates below came from Catherine Long with Citizens Bank. These numbers could be even lower with hefty down payments or private bank programs.

Conforming 30 Year - 6.125% (on average)


Jumbo 30 Year- 6.7505%


7/6 ARM- 6.250%


5/6 ARM- 6.125%


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.




I'm always available and more than happy to provide an analysis for you! Email me at teri@mgsgrouprealestate.com or call at 617-306-3642 to schedule a meeting.

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