Navigating The Waves

Marco Galvez


In the world of finance, the tides are ever-changing, and the mortgage market is no exception. As we delve into the realms of 2024, we find ourselves in a landscape characterized by stability juxtaposed with restraint. This year's journey stands in stark contrast to the tumultuous uncertainties that plagued 2023, offering both challenges and opportunities for those navigating the waters of home financing.

One of the defining features of 2023 was the palpable uncertainty that gripped the mortgage market. With economic fluctuations and shifting policies, potential homeowners and lenders alike found themselves on shaky ground. Mortgage originations in 2023 hit their lowest point since 2014, marking the third-lowest figure in two decades. This decline mirrored the prevailing apprehension and caution that pervaded the financial realm.

However, as we step into 2024, the horizon begins to brighten with a glimmer of hope. Projections indicate a significant turnaround in the mortgage landscape, with loan origination volume expected to soar by 25% compared to the previous year. The trajectory only becomes more promising as we look ahead, with forecasts predicting an additional 20% increase in 2025 and another 25% surge in 2026. This cumulative growth over the next three years is set to exceed 50% compared to the subdued numbers of 2023.

What drives this remarkable reversal of fortunes? Much of the anticipated growth in 2024 is attributed to a strategic move by the Federal Reserve. As the Fed initiates a process of rate reduction, the latter half of the year is poised to witness a surge in loan origination activity. This strategic intervention serves as a catalyst, igniting confidence and stimulating demand within the mortgage market.

Not only is the volume of mortgage originations set to experience a resurgence, but the unit count is also primed for a remarkable turnaround. In 2023, the number of loan origination units hit a two-decade low, comprising a mere 30% of the unit count observed in 2021. However, projections paint a vastly different picture for the years ahead. Over the next three years, loan origination unit count is expected to burgeon by almost 50%, signaling a robust rebound from the depths of uncertainty.

As we navigate the currents of 2024, it's imperative for stakeholders to remain agile and adaptive in response to the evolving mortgage landscape. Homebuyers may find themselves presented with newfound opportunities as favorable rates and increased availability of loans facilitate their homeownership dreams. Lenders, too, must be poised to capitalize on this surge in demand while ensuring prudent risk management practices.

However, amidst the optimism, it's essential to tread with caution. Economic landscapes can be unpredictable, and unforeseen challenges may arise along the journey. Vigilance and foresight will be invaluable assets as we navigate the waves of change.

In conclusion, 2024 stands as a beacon of hope amidst the uncertainties of recent years. With promising forecasts and strategic interventions, the mortgage market is poised for a remarkable resurgence. As we chart our course through the year ahead, let us embrace the opportunities that lie ahead while remaining steadfast in our commitment to adaptability and resilience.


Some additional economic comments from the Congressional Budget Office / February 2024



  • The U.S. Economy

Economic growth slows in 2024 as unemployment increases, partly as a result of tight monetary policy. Real (inflation-adjusted) GDP growth accelerates in 2025 after the Federal Reserve responds to weaker economic conditions in 2024 by lowering interest rates.

Interest rates rose in 2023 as the federal funds rate increased to its highest level since 2001. In CBO’s projections, that rate begins to decline in the second quarter of calendar year 2024. Interest rates on 10-year Treasury notes rise in 2024 and then fall through 2026.

Inflation (as measured by the price index for personal consumption expenditures) slowed markedly in 2023. In CBO’s projections, it slows further in 2024—to a rate roughly in line with the Federal Reserve’s long-run goal of 2 percent—and then ticks up in 2025, before declining slightly.

Article Written by:
Melinda Hennessey
of Axia Home Loans 


We cherish the relationships we make in helping our clients realize their goals. Whether buying or selling a home your best interest is our top priority.

Contact Us