Economic Developments Report for September 2024

This document is an economic developments report for September 2024, detailing the current state of the housing market and economic forecasts. It outlines the ongoing decline in mortgage rates and its limited impact on home purchase activity, with existing home sales remaining near cycle lows due to affordability constraints and lock-in effects. The report revises the near-term home sales forecast downward, projecting total home sales for 2024 at 4.7 million units, the slowest pace since 1995. Economic growth is also discussed, with GDP growth expectations for 2024 set at 2.0 percent. The report highlights the regional variations in housing markets, noting that while some areas see rising inventories, others remain subdued. It emphasizes that despite easing mortgage rates, many potential buyers are still sidelined due to affordability issues and the lock-in effect from existing mortgage rates. The document concludes with insights into consumer sentiment regarding home selling conditions across different regions.