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2024 Mortgage Rate Forecast: What Homebuyers Should Expect

The market landscape in 2023 was all the buzz, prompting many to either hold off on selling their homes, and prompting others to jump head-first into buying a home when the rates were stable.

And now as we embrace 2024, many are wondering what the market will bring them. 

Increases? Decreases? Let’s talk about our Mortgage Rate Forecast, and what homeowners should expect from the upcoming year.

Economic Outlook 

Factors such as inflation rates, employment levels, and government fiscal policies play a role in determining interest rates. Keep an eye on updates from Bank of Canada, Statistics Canada and real estate market reports to gauge the trend of the economy.

Inflation Outlook

Central banks often use interest rates as a tool to manage inflation, adjusting them to maintain stability in pricing levels. A moderate inflation outlook may prompt central banks to keep interest rates steady, offering homebuyers a sense of predictability in the mortgage market. However, an unexpected surge in inflation could lead to central banks tightening monetary policies, potentially resulting in higher mortgage rates. 

The Bank of Canada decided to hold interest rates in December 2023, but only time will tell when it comes to their next announcement! 

Mortgage Rate Trends 

Traditionally, fixed rates have provided a sense of security, whereas variable rates present an opportunity for savings during periods of falling rates. In an environment where rates are on the rise, there might be a tilt towards the preference for fixed-rate mortgages. 

Beyond the difference in rates and their popularity, the housing market plays a large role in how the market will be shifting. Mortgage rates are directly linked to the health of the housing market. 

In situations where the market experiences a downturn, lenders may reduce rates to entice prospective buyers. On the other hand, in a robust housing market, rates are likely to escalate.

What Can Homeowners Do to Prepare for the 2024 Market?

  • Staying current with economic updates, decisions made by the central bank, and movements in the housing market is vital for informed decision-making. Make sure to check out our Instagram Page to be the first to know when The Bank of Canada makes an announcement.  

  • Getting guidance from our team can offer tailored insights reflective of your unique financial circumstances. Get in touch with us today! 

  • It's essential to evaluate your financial position, considering factors like credit score, debt-to-income ratio, and job stability, before making a mortgage decision.

  • Considering your long-term objectives, like the duration you plan to live in the home, is important in determining whether fixed or variable rates are more suitable for you.

Sail the Waves of the 2024 Market Landscape Confidently with Arise Mortgage

The forecast for the 2024 market is influenced by a variety of elements, such as worldwide economic conditions, national monetary strategies, governmental directives, and personal financial situations. 

It's advisable for homebuyers to remain well-informed, consult with experts, and thoughtfully weigh their long-term objectives and financial stability while exploring the mortgage terrain. 

That is where we can come in to support you. Get in touch with our team today, and let’s sail through 2024 confidently!

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