Economic Overview:

In 2023, the economy showed strong resilience, growing by 2.5%. This growth was better than expected, mainly due to robust consumer spending and a strong job market, despite some challenges.

However, in 2024, signs indicate a slight slowdown. While the job market remains solid, there’s a small increase in unemployment, and consumer spending might start to slow down as overall economic growth eases.

As inflation decreases, the Federal Reserve may lower interest rates later in the year, which could lead to slightly lower mortgage rates, staying around 6%.

Single-Family Housing Market:

Lower interest rates might encourage a small uptick in home sales and refinancing. But there’s still a shortage of homes for sale, partly because current homeowners with low mortgage rates are hesitant to move due to higher rates. This lack of supply is likely to keep pushing home prices up, making it difficult for some first-time buyers to afford homes.

Multifamily Market:

High home prices and interest rates may encourage more people to rent rather than buy. Construction of multifamily units has increased in recent years, which could moderate rent increases. However, while there’s more supply in some areas, rent growth might still be higher than usual.

Canyon Mortgage Corp’s Perspective:

As experts in the local mortgage market, Canyon Mortgage Corp keeps clients informed about changes. They predict modest growth in the housing market for 2024. Despite challenges like low inventory and higher interest rates, they believe the market will remain stable. They expect to see more opportunities for homebuyers and renters, though some affordability issues may persist.