Looking Ahead: Second-Quarter Housing Market Trends

Traditionally, the second quarter of the year is characterized by increased buyer and seller activity and peaking inventory levels, but what does Q2 2024 hold for the housing market in terms of mortgage rates, inventory, and home prices? For answers, consumer financial services company Bankrate reached out to several industry pros to get their insights on real estate trends over the next three months. 

Lawrence Yun, chief economist of the National Association of Realtors, is optimistic about the coming months due to continuing job gains and a dip in mortgage rates to around 7% from a cyclical high of 8% last October. And Bankrate's chief economist Greg McBride anticipates 30-year fixed mortgage rates could potentially drop below 6.5% by the middle of the year.

But despite the typical rise in selling and buying activity during spring, Q2 2024 may be slower than in previous years warn McBride and Selma Hepp, chief economist for CoreLogic.

McBride notes that “although inventory levels will improve a bit during the peak buying season, demand likely will as well, so don’t expect a sea change from the market we’ve seen recently.”

Hepp also tempers her optimism about improved supply: “While inventories are showing improvement this spring, the imbalance between buyers and sellers remains,” she says. “That will lead to an increase in the share of homes selling over the asking price and a continued seller’s market environment nationally.”

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