2023 was not the best year for real estate with rising interest rates after an unprecedented hot market during the height of the pandemic. But Louisiana Realtors CEO Norman Morris believes things will improve with mortgage rates expected to settle in between 5% and 6%.
“Buyers at that rate will be a whole lot better off than what we saw in 2023 when rates significantly got up near or even surpassed the 8% level. So, I think it’s going to be some great opportunities for both buyers and sellers,” said Morris.
Morris said the average interest rate for a 30-year fixed mortgage right now is 6.75%.
In addition to interest rates, Morris said the cost of homeowners insurance in the state is also a major hurdle for potential buyers. He said they are working with the legislature and new insurance commissioner to make them more affordable.
“And I think if we can get the property insurance market stabilized, I think the real estate market is just really going to take off even more in 2024,” said Morris.
Morris said economists predict as we get further into the year, first quarter and beyond, that mortgage rates will stabilize around five percent which will make homes more affordable.
“And it’s going to create a lot of opportunities and it will certainly cement the market and allow it to be a great jumpstart and really benefit buyers and sellers as we move forward with the real estate market in 2024,” said Morris.
And with the cost of building materials decreasing, Morris said new construction will only increase the inventory of homes and give consumers more options in the housing market.
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