U.S. HOME PRICES FORECAST TO CLIMB AS MORTGAGE RATES FALL IN 2024

According to a report by Goldman Sachs Research, US home prices are now projected to increase by 5% this year, up from the previous forecast of 1.9%. Roger Ashworth, senior strategist on the structured credit team, and analyst Vinay Viswanathan, noted the change. In 2025, prices are expected to rise by 3.7%, compared with the earlier forecast of 2.8%. These revised forecasts are supported by signs of momentum in housing prices.

Additionally, thirty-year fixed mortgage rates are expected to fall to 6.3% by the end of this year, which could make homes slightly more affordable.