Housing affordability is the worst it’s been in decades. It will improve in 2024, but by only a ‘small step,’ Realtor.com chief economist says

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Mortgage rates are expected to drop next year, but not enough to make sky-high housing costs more affordable for potential homebuyers looking to break into the market, according to Realtor.com. 

“We do expect affordability to improve going into 2024. That's a cornerstone of our housing market forecast,” Realtor.com chief economist Danielle Hale tells Fortune. “But it's going to be a pretty small step in that direction.”