Wait, What? Things Are Looking Up for Home Buyers?

Here are some reasons that 2024 might be better for home buyers than the previous two years.
Holden Lewis
By Holden Lewis 
Published
Edited by Mary Makarushka

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You feel demoralized about the housing market, right? Hold on. After a grim 2022 and 2023, it looks like 2024 is shaping up to be less hostile to home buyers.

Here's a summary of what's been rotten in the state of housing: Home prices skyrocketed from the middle of 2020 to mid-2022. Then, mortgage rates took off, and the 30-year fixed-rate home loan crested at almost 8% in October 2023. Home buyers struggled with affordability as high interest rates eroded their borrowing power. They had few homes to choose from, anyway.

Meanwhile, rising rents made it harder to save up a down payment — or simply to find an affordable place to rent. The typical tenant's annual rent went up 6% in 2022, and another 8% in 2023, after rising less than 4% each year in the previous 14 years.

It's been a rough few years. But 2024 might see improvement in mortgage rates, home prices, and availability of both new and used homes for sale. Buying a home won't be easy in 2024, but it might be less frustrating than in 2022 and 2023.

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Mortgage loans from our partners

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

Better - PURCHASE logo
Check Rate

on Better

Better

4.5

NerdWallet rating 
Better - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on Better

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

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NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

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on NBKC