U.S. Federal Reserve officials say they are confident housing inflation will finally cool in coming months, a key and long-awaited component of their effort to control overall price increases and secure their turn to interest rate cuts. The real challenge on that front, however, may be just over the horizon when a pipeline of new apartments starts to run dry while the stock of single-family homes remains short, a recipe for future price pressure in a category accounting for about a third of the Consumer Price Index. Though their 2% inflation target uses an index that is less sensitive to shelter costs, Fed officials still see housing and rent dynamics as an important, unresolved part of their inflation battle, one that could highlight one of the inherent tensions in today's tight-credit policy stance.
Housing prices and mortgages rates are both expected to decrease in 2024. Deseret News checked out housing and rental market predictions from Realtor.com, Zillow, Forbes and Redfin to identify potential trends in the housing market, from rentals to sales, including both new and existing housing.