U.S. Economic, Housing and Mortgage Market Outlook January 2024

This report presents an analysis of the U.S. economic, housing, and mortgage market outlook for January 2024. It details recent developments in the U.S. economy, highlighting a growth rate of 4.9% for Q3 2023, driven by consumer spending and a notable increase in residential investment. The labor market remains strong, with 2.7 million jobs added in 2023, although signs of moderation are emerging as job growth is expected to slow in 2024. The housing market is impacted by high mortgage rates, resulting in the lowest home sales since 2012. The report outlines the effects of rising mortgage rates on borrower behavior, including an increase in discount points paid to lower rates. It also discusses inflation trends, with the Core Personal Consumption Expenditure measure showing a year-over-year increase of 3.2%. The report concludes with forecasts for economic growth, mortgage rates, and home prices, indicating modest increases in the housing market amid ongoing challenges.