How high will interest rates climb?
According to the National Association of Realtors (NAR), mortgage rates could rise to 8% in 2023, but predicts that they will lower to 6% by March or April 2024. The association noted that high interest rates are harming home sales nationwide.
At an economic summit in Naples, Florida in October, three economists spoke about the lack of inventory, higher interest rates and higher rents affecting many real estate markets nationally.
On a brighter note, they predicted that Florida is doing better than most of the U.S. due to so many people continuing to move to the state. According to the US Census, approximately 900 people per day move into Florida and the trend should continue. They also predicted that 2024 would bring a better real estate market due to interest rates lowering.
Fannie Mae (Federal National Mortgage Association) agrees with the NAR and predicts that 30-year mortgage rates will drop to 6.3% to 6.8% range in 2024.