2023 Real estate market review for Shoreline

By Lella Norberg

Over the past year, mortgage rates steadily increased and peaked in October at over 8%. 

Following favorable inflation reports and anticipation of a Fed rate cut in 2024, mortgage rates declined in December to mid-6% levels last seen at the end of 2022. 

Many projections suggest interest rates will continue to ease in 2024 contingent on favorable economic indicators. 

Lower interest rates help not only buyers but also might inject much-needed inventory to the market. 

Homeowners with very low mortgage rates are sometimes reluctant to sell and take on a new mortgage at higher interest rate (lock-in effect). 

The lower rates may give more homeowners requiring financing confidence to list their homes for sale.