As we set our sights on the 2024 real estate landscape in Wisconsin, current economic indicators present a mixed bag for those looking to buy or sell homes. Housing economists suggest a moderate easing of mortgage rates, yet a significant demographic of homeowners appears ‘rate-locked,’ potentially keeping the market tight.

Mortgage Rates: A Slight Easing on the Horizon

Recent trends have shown mortgage rates dropping for the fifth consecutive week, giving a glimmer of hope to prospective homebuyers in Wisconsin. Despite this, forecasts remain cautious. The consensus among several housing economists indicates that while we might see a moderate decrease in mortgage rates, the average rate for a 30-year home loan is expected to hover above 6%.

The Impact of ‘Rate-Locked’ Homeowners

A curious phenomenon may affect the 2024 market – homeowners who secured historically low rates around two years ago seem disinclined to sell their homes. This ‘rate-lock’ effect means that even if mortgage rates fall, the incentive isn’t strong enough to entice these homeowners to trade up or downsize, as they would have to take on a mortgage with a higher rate than they currently have. Nearly 90% of homeowners with a mortgage enjoyed a rate of 6% or lower as of last year, which only underscores the reluctance to move.

Inventory and Home Prices: The Persistent Challenge

This hesitancy to sell contributes to a persistent issue in Wisconsin’s housing market: low inventory. A lack of available homes has been a driving factor in maintaining elevated home prices, even though the market has experienced a significant 20.2% drop in sales of previously occupied homes through the first part of the year.

Looking Ahead: Economic Forecasts and Market Dynamics

Economists like Danielle Hale of forecast an average mortgage rate of 6.8% in 2024, with a potential dip to 6.5% by year-end. Mark Fleming from First American Financial predicts a range between 6.5% and 7.5%. The National Association of Realtors anticipates a start to the spring homebuying season with rates between 6% and 7% – roughly double what they were just two years prior.

What This Means for Wisconsin Buyers and Sellers

Any reduction in home loan rates is an advantage for buyers, especially those who were facing rates as high as 7.79% in recent times – the steepest in over two decades. The current average rate falling to 7.22% is the lowest in 10 weeks, and while this does improve affordability, the overarching challenge remains the limited housing supply.

For sellers, the market dynamics may be a bit more complex. A modest rate pullback may not be enough to catalyze a selling decision, especially if it involves acquiring a new mortgage at a higher rate. The disincentive to sell could continue to play a significant role in shaping the Wisconsin housing market throughout 2024.


Wisconsin’s housing market in 2024 is shaping up to be one of cautious optimism for buyers and strategic patience for sellers. While economic and market conditions point to a potential easing of mortgage rates, the ‘rate-lock’ effect and low inventory are likely to define the market’s trajectory.