Zillow’s latest forecast calls for home values to hold steady in 2024, falling 0.2%. Predicting how mortgage rates will move is a nearly impossible task, but recent inflation news gives the impression that rates are likely to hold fairly steady as well in the coming months. Taken together, the cost of buying a home looks to be on track to level off next year, with the possibility of costs falling if mortgage rates do.That would give time for wages and buyers’ savings to catch back up — welcome news after the rapid rise in housing costs over the past two years. Wage growth has held strong, meaning the share of income spent on a mortgage will fall next year even if costs remain the same.
