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The Federal Reserve’s period of policy tightening appears to be over, opening the door to lower borrowing costs in the year ahead.
Bankrate’s chief financial analyst Greg McBride says most types of consumer loans will be cheaper by the end of 2024.
From mortgage rates and credit cards to auto loans and savings accounts, here are his predictions for where rates are headed.

The Federal Reserve’s effort to bring down inflation has so far been successful, a rare feat in economic history.
The central bank signaled in its latest economic projections that it will cut interest rates in 2024 even with the economy still growing, which would be the sought-after path to a “soft landing,” where inflation returns to the Fed’s 2% target without causing a significant rise in unemployment.

“Rates are headed lower,” said Tim Quinlan, senior economist at Wells Fargo. “For consumers, borrowing costs would fall accordingly.”
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Most Americans can expect to see their financing expenses ease in the year ahead, but not by much, cautioned Greg McBride, chief financial analyst at Bankrate.
“We are in a high interest rate environment, and we’re going to be in a high interest rate environment a year from now,” he said. “Any Fed cuts are going to be modest relative to the significant increase in rates since early 2022.”
Although Fed officials indicated as many as three cuts coming this year, McBride expects only two potential quarter-point decreases toward the second half of 2024. Still, that will make it cheaper to borrow.

From mortgage rates and credit cards to auto loans and savings accounts, here are his predictions for where rates are headed in the year ahead:
Prediction: Credit card rates fall just below 20%
Because of the central bank’s rate hike cycle, the average credit card rate rose from 16.34% in March 2022 to nearly 21% today — an all-time high.
Going forward, annual percentage rates aren’t likely to improve much. Credit card rates won’t come down until the Fed starts cutting and even then, they will only ease off extremely high levels, according to McBride.
“The average rate will remain above the 20% threshold for most of the year,” he said, “and eventually dip to 19.9% by the end of 2024 as the Fed cuts rates.”
Prediction: Mortgage rates decline to 5.75%
Thanks to higher mortgage rates, 2023 was the least affordable homebuying year in at least 11 years, according to a report from real estate company Redfin.
But rates are already significantly lower since hitting 8% in October. Now, the average rate for a 30-year, fixed-rate mortgage is 6.9%, up from 4.4% when the Fed started raising rates in March of 2022 and 3.27% at the end of 2021, according to Bankrate.
McBride also expects mortgage rates to continue to ease in 2024 but not return to their pandemic-era lows. “Mortgage rates will spend the bulk of the year in the 6% range,” he said, “with movement below 6% confined to the second half of the year.”
Prediction: Auto loan rates edge down to 7%
When it comes to their cars, more consumers are facing monthly payments that they can barely afford, thanks to higher vehicle prices and elevated interest rates on new loans.
The average rate on a five-year new car loan is now 7.71%, up from 4% when the Fed started raising rates, according to Bankrate. However, rate cuts from the Fed will take some of the edge off of the rising cost of financing a car, McBride said, helped in part by competition between lenders.
McBride expects five-year new car loans to drop to 7% by the end of the year.
Prediction: High-yield savings rates stay over 4%
Top-yielding online savings account rates have made significant moves along with changes in the target federal funds rate and are now paying more than 5% — the most savers have been able to earn in nearly two decades — up from around 1% in 2022, according to Bankrate.
Even though those rates have likely peaked, “yields are expected to remain at the highest levels in over a decade despite two rate cuts from the Fed,” McBride said.
According to his forecast, the highest-yielding offers on the market will still be at 4.45% in the year ahead. “It will still be a banner year for savers when those returns are measured against a lower inflation rate,” McBride said.
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Investor Steve Eisman of “The Big Short” fame is questioning the level of bullishness on Wall Street — even with the market’s tepid start to the year.
From enthusiasm surrounding the “Magnificent Seven” technology stocks to expectations for multiple interest rate cuts this year, Eisman believes there’s little tolerance for things going wrong.

“Long term, I’m still very bullish. But near term I just worry that everybody is coming into the year feeling too good,” the Neuberger Berman senior portfolio manager told CNBC’s “Fast Money” on Tuesday.
On the year’s first day of trading, the tech-heavy Nasdaq fell 1.6% percent, the S&P 500 fell 0.6%, and the Dow eked out a gain. The major indexes are coming off a historically strong year: The Nasdaq rallied 43%, while the S&P 500 soared 24%. The 30-stock Dow was up nearly 14% in 2023.
“The market climbed a wall of worry the whole year. So, now here we are a year later, and everybody including me has a pretty benign view of the economy,” Eisman said. “It’s just that everybody is coming into the year so bullish that if there are any disappointments, you know, what’s going to hold the market up?”
Eisman notes that fewer rate hikes than expected in 2024 could emerge as a negative short-term catalyst. The Federal Reserve has penciled in three rate cuts this year, while fed funds futures pricing suggests even more trimming. Eisman thinks these expectations are too aggressive.
“The Fed is still petrified of making the mistake that [former Fed Chief Paul] Volcker made in the early ’80s where he stopped raising rates, and inflation got out of control again,” said Eisman. “If I’m the Fed and I’m looking at the Volcker lesson, I say to myself ‘What’s my rush? Inflation has come in.'”

Yet, Eisman suggests it’s still a wait-and-see situation.
“If you had to lay your life on the line, I’d say one [cut] unless there’s a recession. If there’s no recession, I don’t see any reason why the Fed needs to be aggressive at cutting rates,” he said. “If I’m in [Fed chief Jerome] Powell’s seat, I pat myself on the back and say ‘job well done.'”

‘Housing stocks are justified’

Eisman, who’s known for predicting the 2007-2008 housing market collapse and profiting from it, appears to be warming up to homebuilding stocks.
The investor said on “Fast Money” in October it was a group he was avoiding. The SPDR S&P Homebuilders ETF, which tracks the group, is up 25% since that interview and 57% over the past 52 weeks.
“The housing stocks are justified in the sense that the homebuilders have great balance sheets. They’re able to buy down rates to their customers, so that the customers can afford to buy new homes,” he said. “There’s a shortage of new homes.”
However, Eisman skips housing among his top 2024 top plays. He particularly likes areas of technology and infrastructure.
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Retirees can expect to see a Social Security cost-of-living adjustment starting this month.
Other factors may also influence how much benefit income they receive in 2024.

Adamkaz | E+ | Getty Images

If you’re a retiree who relies on Social Security benefits for income, you will see some changes in 2024.
You will get a benefit boost to adjust for inflation. But just how much extra money you see will depend on the size of your Medicare Part B premiums and any money for taxes withheld from your check.

Here are four factors that will influence how much Social Security benefits you receive in the new year.

1. You will get a 3.2% cost-of-living adjustment

Social Security benefits will go up 3.2% starting in January due to an annual cost-of-living adjustment.
That will amount to an increase of more than $50 per month on average for retirement benefits, according to the Social Security Administration.
The increase is much lower than the 8.7% COLA that went into effect in 2023. That prompted a benefit boost of more than $140 per month on average, the Social Security Administration said when that increase was announced.
The maximum benefit for a retired worker who claims at full retirement age will go up to $3,822 per month in 2024, up from $3,627 per month in 2023.

The average benefit for all retired workers will be $1,907 in 2024, up from $1,848 in 2023, according to the Social Security Administration.

2. Your Medicare Part B premiums will be higher

One factor that will affect exactly how much beneficiaries receive is their Medicare Part B premium, which is typically deducted directly from Social Security checks.
Medicare Part B serves as medical insurance and covers doctor and other provider services, outpatient care, home health care, durable medical equipment and some preventive services.
Standard monthly premiums are slated to rise by $9.80 per month to $174.70 in 2024, from $164.90 per month in 2023.
However, people with higher incomes will pay more as a result of what is called income-related monthly adjustment amounts, or IRMAA.
You generally can’t have your Medicare Part B premiums adjusted, with one exception, according to certified financial planner Tim Steffen, director of advanced planning at financial services company Baird.
“If something has materially changed in your situation … you can appeal your Medicare premium,” Steffen said.
That applies to events that have caused your income to go down since 2022, such as a divorce, the death of a spouse, the loss of a pension or starting retirement.

3. You may face an earnings test

If you claim Social Security between age 62 and your full retirement age, your benefits will be reduced for starting early. If you also continue to work, you may be subject to what is known as the retirement earnings test if you earn over a certain threshold.
In 2024, the earnings exempt from the retirement earnings test will go up to $22,320, from $21,240 in 2023. For every $2 in earnings above that limit, $1 in benefits will be withheld.
The good news is those withheld benefits are applied to your monthly benefits once you reach full retirement age.
Importantly, there is a different earnings test threshold for the year you turn full retirement age.
In 2024, this will go up to $59,520 for the months before you reach your full retirement age, compared to $56,520 in 2023. In the year you turn full retirement age, $1 in benefits is withheld for every $3 in earnings above the limit.

The earnings test is an important factor to consider when deciding whether to claim retirement benefits early, according to Joe Elsasser, a CFP and president of Covisum, a provider of Social Security claiming software.
The new higher threshold — almost $60,000 — for the year you turn full retirement age also presents an opportunity, he said.
For example, if you turn full retirement age in July, you may earn about $10,000 per month prior to your birthday and not be subject to the earnings test if you start benefits Jan. 1, Elsasser said.

4. You may pay taxes on your benefit income

Social Security benefit income may be subject to federal taxes.
The rate at which that income is taxed is based on your combined income. That is calculated by adding half your benefits with your adjusted gross income and nontaxable interest.
You may pay taxes on up to 50% of your benefits if your combined income is between $25,000 and $34,000 for individual tax filers, or between $32,000 and $44,000 for couples who are married and file jointly.
Up to 85% of your benefits may be taxable if your individual combined income is more than $34,000 and you file individually, or if you’re married with more than $44,000.

Notably, these thresholds do not change from year to year. However, as benefit income increases each year with COLA, more of that becomes subject to taxes over time.
More beneficiaries may be liable for federal income taxes on their benefit income this tax season due to the 8.7% COLA for 2023, according to research from The Senior Citizens League. The nonpartisan senior group is advocating for the tax thresholds to be updated and annually adjusted so seniors do not have to pay as much taxes on their benefit income.
“Certainly, taxation has become a growing concern,” said Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League.
To avoid a big bill at tax time, retirees may opt to have money withheld from their monthly checks.
How will the 3.2% Social Security cost-of-living adjustment for 2024 affect you? If you would be willing to speak on the record for a story, email lorie.konish@nbcuni.com.Don’t miss these stories from CNBC PRO: More

Borrowers could see relief from President Joe Biden’s Plan B for student loan forgiveness this year.
But far fewer people stand to benefit this round, and legal challenges are still expected.

U.S. President Joe Biden speaks on the student debt relief plan as Secretary of Education Miguel Cardona (R) listens in the South Court Auditorium at the Eisenhower Executive Office Building on October 17, 2022 in Washington, DC.
Alex Wong | Getty Images

How Plan A, Plan B student loan forgiveness compares

Nearly 40 million Americans would have gotten relief from Biden’s original student loan forgiveness plan.
The president’s Plan B is looking much narrower. That’s because the justices ruled in June that the first plan, which covered more than 90% of federal student loan borrowers, was too far-reaching.
“Can the Secretary use his powers to abolish $430 billion in student loans, completely canceling loan balances for 20 million borrowers, as a pandemic winds down to its end?” wrote Chief Justice John Roberts in the majority opinion for Biden v. Nebraska. “We can’t believe the answer would be yes.”

The new forgiveness policy will include only a small share of borrowers, said Luke Herrine, an assistant professor of law at the University of Alabama.
“I think it would be easier to justify in front of a court that is skeptical of broad authority,” Herrine said in an earlier interview with CNBC.

The Biden administration seems focused on still delivering relief to specific groups of borrowers, according to a recent paper issued by the U.S. Department of Education. Those are:

Borrowers with current balances greater than what they originally borrowed
Those who entered into repayment on their undergraduate student loans 20 or 25 years ago
Students who attended programs of questionable value
Borrowers eligible for existing relief programs, including Public Service Loan Forgiveness, who just haven’t applied or perhaps didn’t know about those options
Debtors in financial hardship

Altogether, it’s possible somewhere between 4 million and 10 million borrowers will be eligible for the revised forgiveness program, said higher education expert Mark Kantrowitz. It’s hard to know this figure, though, until the final rule is published, he cautioned.
There’s another key difference between the plans.
Biden first tried to cancel student debt with an executive order in August 2022 and had promised borrowers the relief within six weeks of them completing their paperwork. This time he’s turning to the rulemaking process. That procedure is lengthier, typically involving a public comment period and other time-consuming steps.

Borrowers could see cancellation this year

Kantrowitz anticipates that the proposed rule for the relief will be published by March. At that point, there will likely be a 30-day public comment period.
There may be many comments from the public, which could slow things down, but the final rule will probably be published in the Federal Register no later than November, Kantrowitz said.
Normally, due to the timeline of regulatory changes, that would mean the relief would go into effect on July 1, 2025.
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However, there’s good reason to believe the Biden administration may try to speed things up, Kantrowitz said.
“Given the political significance of Plan B, it would not be surprising if the U.S. Department of Education decides to implement the new regulations sooner, before the election,” he said.

More legal challenges are ‘very likely’

It’s “very likely” there will again be Republican lawsuits seeking to block the new relief, Kantrowitz said, “which could add delays.”
“This will set up a sharp contrast between Democrats and Republicans ahead of the elections,” he said.

This will set up a sharp contrast between Democrats and Republicans ahead of the elections.

Mark Kantrowitz
higher education expert

Former President Donald Trump sided with the Supreme Court.
“Today, the Supreme Court also ruled that President Biden cannot wipe out hundreds of billions, perhaps trillions of dollars, in student loan debt, which would have been very unfair to the millions and millions of people who paid their debt through hard work and diligence; very unfair,” Trump said at a campaign event last year.
Voters, however, support forgiving at least some student loan debt by a 2-to-1 margin, according to a Politico/Morning Consult poll. Less than a third oppose the policy. More

The new Free Application for Federal Student Aid soft launched over the weekend.
However, the form is only available for short periods of time for now as the U.S. Department of Education works to “resolve minor issues.”
Even if students are able to submit a completed 2024–25 FAFSA form, that information won’t be sent to schools until late January, the Education Department also said, which could potentially delay financial aid award offers from colleges.

A new Free Application for Federal Student Aid soft launched over the holiday weekend with much anticipation after a long delay.
However, for now, the 2024–25 FAFSA form is only available for short periods of time as the U.S. Department of Education works to “resolve minor issues,” according to a department spokesperson.

This soft launch period and pauses will allow for “updates to the form as needed,” the department said. Still, “thousands of people successfully completed their application while we monitored performance in-real time.”
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Higher education expert Mark Kantrowitz aimed to test out the new site over the weekend, to no avail.
“I have not been able to submit the form, and I’ve heard from no students who have been able to submit the form,” he said Monday.
Indeed, the form was only available briefly over the holiday weekend: a 30-minute window on Dec. 30, a 30-minute window on Dec. 31, and a two-hour window on Jan. 1, according to the Department of Education.

As of Tuesday, the site remained open for a longer stretch and more than 30,000 applications were successfully submitted, the Department said. During that time, Kantrowitz was also able to submit a form, he said.

Some 17 million students file the FAFSA each year

A plan to simplify the FAFSA has been years in the making. In 2020, the Consolidated Appropriations Act was passed to streamline the process and overhaul dozens of systems, some of which have not been updated in almost 50 years. Those changes are finally going into effect.
In ordinary years, the FAFSA form is used by more than 17 million students and roughly 5,500 colleges and universities in all 50 states, according to the Department of Education.

They had to have something available even if it wasn’t ready for prime time.

Kalman Chany
author of The Princeton Review’s “Paying for College”

The FAFSA serves as the gateway to all federal aid money, including federal student loans, work study and especially grants — which have become the most crucial kind of assistance as college costs soared because they typically do not need to be repaid.

What FAFSA delays mean for college-bound students

Kalman Chany, a financial aid consultant and author of The Princeton Review’s “Paying for College,” advises students and families not to panic if they cannot file the FAFSA during the soft launch.
“If you are having access issues, it is better to wait,” he said. “They had to have something available even if it wasn’t ready for prime time.”
If students do submit a completed 2024–25 FAFSA form early this year, that information won’t be sent to schools until late January, the Department of Education also said, “so you will have ample time to fill out the form and do not need to rush to complete the form during the soft launch.”
Because of the postponement, colleges might still be able to get financial aid award offers done by late March or early April, according to Kantrowitz. “Otherwise, it will be a complete disaster,” he said.
“Families will not be able to get financial aid offers in a timely manner. Already, students who applied early action or early decision do not have award offers.”

What’s changed with the new FAFSA

Not only has the timing changed, but the simplified form now also uses a calculation called the “Student Aid Index” to estimate how much a family can afford to pay.
Under the new system, more low- and moderate-income students will have access to federal grants, but the changes will reduce eligibility for some wealthier families.
And, as part of the FAFSA simplification, families will no longer get a break for having multiple children in college at the same time, effectively eliminating the “sibling discount.”

For now, the new FAFSA also relies on old consumer price index figures from 2020, which don’t account for the recent runup in inflation. That could mean many students “will get less financial aid than they deserve,” Kantrowitz said.
“It is a pretty big deal,” he said. “We are talking about thousands of additional dollars that families will have to pay for college.”
All families of four in this application cycle with adjusted available income of more than $35,000 will be affected by the failure to make inflationary adjustments, with middle- and higher-income students the hardest hit, according to Kantrowitz.
There will be less of an effect on lower-income students whose expected family contribution was already $0.  
For example, a typical family in New York with adjusted available income of $100,000 could be expected to contribute $12,943 instead of $9,162 toward their annual college costs — a difference of nearly $4,000 in aid, according to calculations by Kantrowitz.
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A simplified Free Application for Federal Student Aid finally became available over the weekend.
However, there are some “issues” with the soft launch, according to the U.S. Department of Education.
Even if students do successfully submit a completed 2024–25 FAFSA form, that information won’t be sent to schools until late January, the Education Department also said, which could potentially delay financial aid award offers from colleges.

A simplified Free Application for Federal Student Aid is finally online after a significant delay.
However, as part of a “soft launch,” the new FAFSA form has only been periodically available. It’s likely few, if any, of the millions of students applying to college for the 2024-25 academic year have been able to successfully submit an application, according to higher education expert Mark Kantrowitz.

“I am convinced that nobody has been able to submit the form,” he said.
“Congress required the FAFSA to be available before Jan. 1, 2024. They missed that deadline,” Kantrowitz said.
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“Leading up to and as part of the soft launch, we have identified some minor issues,” the U.S. Department of Education said in a statement Sunday . “We are aware of these issues and are working to resolve them.”
For now, Kalman Chany, a financial aid consultant and author of The Princeton Review’s “Paying for College,” advises students and families not to panic. “If you are having access issues, it is better to wait,” he said.

“They had to have something available even if it wasn’t ready for prime time.”

Even if students do submit a completed 2024–25 FAFSA form early this year, that information won’t be sent to schools until late January, the Department of Education also said, “so you will have ample time to fill out the form and do not need to rush to complete the form during the soft launch.”
With the delayed timeline, colleges might still be able to get financial aid award offers done by late March or early April, according to Kantrowitz. “Otherwise, it will be a complete disaster,” he said. “Families will not be able to get financial aid offers in a timely manner. Already, students who applied early action or early decision do not have award offers.”

What’s changed with the new FAFSA

Not only has the timing changed, but the simplified form now also uses a calculation called the “Student Aid Index” to estimate how much a family can afford to pay.
Under the new system, more low- and moderate-income students will have access to federal grants, but the changes will reduce eligibility for some wealthier families.
And, as part of the FAFSA simplification, families will no longer get a break for having multiple children in college at the same time, effectively eliminating the “sibling discount.”

They had to have something available even if it wasn’t ready for prime time.

Kalman Chany
author of The Princeton Review’s “Paying for College”

For now, the new FAFSA also relies on old consumer price index figures from 2020, which don’t account for the recent runup in inflation. That could mean many students “will get less financial aid than they deserve,” Kantrowitz said.
“It is a pretty big deal,” he said. “We are talking about thousands of additional dollars that families will have to pay for college.”
All families of four in this application cycle with adjusted available income over $35,000 will be affected by the failure to make inflationary adjustments, with middle- and higher-income students the hardest hit, according to Kantrowitz. There will be less of an effect on lower-income students whose expected family contribution was already $0.  
For example, a typical family in New York with adjusted available income of $100,000 could be expected to contribute $12,943 instead of $9,162 toward their annual college costs — a difference of nearly $4,000 in aid, according to calculations by Kantrowitz.
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The S&P 500 ended the year up 24.2%, while the Dow Jones Industrial Average finished the year with more than a 13% gain.
“It is exciting to see healthy, positive returns,” said Marguerita Cheng, a CFP and the CEO of Blue Ocean Global Wealth.
What moves should investors make when stocks have soared? Here’s some advice from Cheng and other members of CNBC’s Advisor Council.

Rear view of woman sitting on top of mountain against cloudy sky during sunrise.
Simonkr | E+ | Getty Images

It was a very good year for the stock market.
The benchmark S&P 500 ended the year with a 24.2% gain, the Dow Jones Industrial Average rose more than a 13% this year and and the Nasdaq soared 43%.

An investor who had $500,000 in the S&P 500 index around 12 months ago, would have roughly $630,000 now, according to an analysis by Morningstar Direct.
“It is exciting to see healthy, positive returns,” said certified financial planner Marguerita Cheng, the CEO of Blue Ocean Global Wealth.
What moves should investors make when the market is soaring? Here’s some advice from Cheng and other members of CNBC’s Advisor Council.

‘Don’t chase the market’

Although many investors are seeing their portfolios at all-time highs, they should typically avoid cashing out because of the rally, Cheng said.
“I advise clients to remember that the time they are in the market is more important than trying to time the market,” Cheng said.

Indeed, over the last 20 or so years, the S&P 500 produced an average annual return of around 6%. But if you missed the 20 best days in the market over that time span by trying to time things to your advantage, your return would shrivel to 0.1%, according to an analysis by Charles Schwab.
“The market keeps going up, so even though it’s at a high, it might be even higher in the future,” said CFP Sophia Bera Daigle, founder of Gen Y Planning in Austin, Texas.
Yet the recent rally doesn’t mean you should suddenly pour more money into your investments, either, said Ivory Johnson, a CFP and founder of Delancey Wealth Management in Washington, D.C.
“Don’t chase the market,” Johnson said. “Often times retail investors get excessively bullish after the move has already happened, and turn a win into a loss.”

Afraid that the good times will give way to a recession? It may be helpful to zoom out.
Dramatic ups and downs aside, history reveals the market reliably gives more than it takes over long periods.
Between 1900 and 2017, the average annual return on stocks has been around 11%, according to calculations by Steve Hanke, a professor of applied economics at Johns Hopkins University in Baltimore. After adjusting for inflation, that average annual return is still 8%.

Consider rebalancing, risk tolerance

If most of your investments are pinned for retirement, you likely want to stay the course, experts say.
That’s because you’re not supposed to touch that money until your post-working years, which, for most people, is far down the road.
But if you have stocks in a brokerage account that you’ve been holding for over a year, there may be cases where it does make sense to redirect some of your profits, Bera Daigle said.
For example, it can be worth it to do so if you want to pay off debt or don’t have sufficient emergency savings (most advisors recommend salting away three to six months worth of expenses).
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Amid a market rally, investors should typically “execute the same process as you would do when stocks go down,” Johnson said.
“Review your risk tolerance, time horizon and ask if anything has changed,” Johnson said.

It is exciting to see healthy, positive returns.

Marguerita Cheng
CEO of Blue Ocean Global Wealth

Big drops and rises in the market can be a good time to rebalance your portfolio, said CFP Cathy Curtis, founder and CEO of Curtis Financial Planning in Oakland, California.
“It’s quite possible that the rally of the last few months has created an overweight to stocks versus bonds in a person’s portfolio,” Curtis said.
For example, if you want your money allocated 70% to stocks, and 30% to bonds, you may now or at least soon need to sell some stocks and add to your bonds, she added. More

London, Rome and Paris are generally among Americans’ favorite overseas destinations each year.
Many travelers are eyeing different trips in 2024. Demand is surging for major cities in Asia — like Tokyo; Seoul, South Korea; and Shanghai — as the continent reopens from Covid-19-related border closures.
Off-the-beaten-path locales in Europe, ski destinations in Canada and Atlantic beach getaways are also trending, data shows.

Tokyo, Japan.
Matteo Colombo | DigitalVision | Getty Images

When it comes to travel abroad, popular destinations like London, Paris and Rome always seem to top the wish list for Americans.
But many travelers are looking beyond those mainstay cities for trips in 2024. Interest in major Asian hubs, off-the-beaten-path locales in Europe and other areas has surged, experts said.

“It’s clear that 2024 is shaping up to be the year of globetrotting,” Airbnb wrote last month.
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Broadly, overseas travel is hot: Searches for international flights are up 13% year-over-year, even though prices are about 10% higher, according to Steve Hafner, CEO of Kayak, a travel website.
“Americans are looking to go abroad,” Hafner said. “They’ve done the domestic stuff the last couple years.”
Here are the trending destinations for Americans in 2024.  

1. Asia takes the crown again

Kanchisa Thitisukthanapong | Moment | Getty Images

Americans flocked to the Asia-Pacific region in 2023 — and that love affair is poised to continue in the new year.
Tokyo and Seoul, South Korea, respectively rank as the No. 1 and 2 trending international hot spots next year among U.S.-based travelers, according to travel app Hopper.
Kayak data shows a similar trend. Its top five hot spots are in Asia: Hong Kong; Shanghai; Taipei City, the capital of Taiwan; Tokyo; and Osaka, Japan, respectively.
For example, searches for Hong Kong and Shanghai are up 355% and 216%, respectively, year-over-year, according to Kayak. (The travel site analyzed search traffic among Americans from March 16 to Sept. 15 this year, for travel planned in 2024, and compared it to the same period last year.)

Kyoto, Japan
Sw Photography | Stone | Getty Images

Japan also ranks highly among non-U.S. travelers: Osaka, Kyoto and Tokyo are among the top 24 worldwide destinations next year, according to Airbnb data.
Asian nations were among the slowest to ease border closures related to the Covid-19 pandemic. Now that they’re open again, tourists are unleashing a pent-up wanderlust, experts said.
“People couldn’t travel there, and now they are making it up,” said Sofia Markovich, a travel advisor and founder of Sofia’s Travel.
China reopened its borders in January 2023, “one of the last places” to do so, Hafner said.

Japan reopened to tourists starting in June 2022. There are other factors driving increased interest to that nation, like a historically strong U.S. dollar relative to the Japanese yen (and other currencies), which gives Americans additional buying power, and more flights from budget airlines, Hafner said.
Search traffic for Japan has more than tripled for trips during the first nine months of 2024 relative to the same period in 2023 — a larger increase than any other nation, Airbnb said.

Americans are looking to go abroad. They’ve done the domestic stuff the last couple years.

Steve Hafner

Historically, Tokyo has “hands down” been the most popular city for Americans to visit in Asia, said Hayley Berg, lead economist at Hopper. Now, demand is “even greater” than usual, she said.
Tourists may also pay a hefty premium to fly to Asia next year: “Good deal” prices for airfare to the continent is $1,204 for 2024, on average — 45% more than 2019, a much larger increase relative to other continents, according to Hopper.

2. Going off the beaten path in Europe

Stockholm, Sweden.
Leonardo Patrizi | E+ | Getty Images

Overcrowding in the traditional European hubs is driving an influx of tourists to generally less-frequented areas, experts said.  
For example, Stockholm, Sweden; Budapest, Hungary; Helsinki, Finland; and Prague, Czech Republic, respectively rank seventh to 10th on Kayak’s list of trending destinations abroad.
Copenhagen, Denmark, is No. 4 on Hopper’s 2024 hot spot ranking. Prague and Edinburgh, Scotland, are No. 7 and No. 8, respectively.
“People are really discovering the off-the-beaten path places,” Markovich said. “Because your Paris and your Rome and London and Barcelona are just too crowded. And experienced travelers want to get away from that.”
She recommends “a lot” of Scandinavian travel since it’s “so unspoiled by overtourism.”

The Salisbury Crags in Holyrood Park, Edinburgh, Scotland.
Andrew Merry | Moment | Getty Images

Additionally, Finland became a member of the NATO military alliance in 2023, driving more awareness of the nation among Americans, Kayak’s Hafner said.
Cities like Budapest and Prague have always been popular but not to the extent of some European tourist magnets, Markovich said.
One of those typical magnets — Paris — is poised for an additional burst this year: The City of Light is hosting the 2024 Summer Olympics.

Demand for flights to Paris — and for nearby cities — during the Olympics has more than doubled versus this time last year, according to Hopper data.
Lower relative prices for some lesser-known spots in Europe are also likely attracting people, Berg said, especially since average flights to Europe overall are 5% more expensive in 2024 versus 2023, at $717, Hopper data shows.

3. The Atlantic tropics over the Caribbean

Tenerife, the largest of Spain’s Canary Islands.
Faba-photograhpy | Moment | Getty Images

Although places like Cancun, Mexico, remain popular as warm-weather beach destinations, Americans are increasingly turning to Atlantic tropical vacations over the Caribbean, said Hopper’s Berg.
“This is something new this year that we started seeing emerge” and the trend “will definitely continue” in 2024, she said.
For example, Tenerife, the largest of Spain’s Canary Islands, and Funchal, the capital of Portugal’s Madeira archipelago, ranked No. 9 and 10, respectively, on Hopper’s international trend list. Both are located off the West African coast.

People are really discovering the off-the-beaten path places.

Sofia Markovich
travel advisor

Though not on the Atlantic, Málaga, a Mediterranean port city on the Costa del Sol in southern Spain, ranked sixth on Kayak’s list. The Andalusian city gets about 300 days of sunshine a year, on average, and, according to one recent report, is the No. 1 city in the world for expats.
Search interest there is up 60% year-over-year, Kayak data shows. And that’s following a year in which Málaga was already “overrun,” Hafner said.
“I think that word has gotten out,” he said.

4. Canada’s ski mountains are having a ‘renaissance’

A ski slope at Grouse Mountain in Vancouver, Canada.
Daisuke Kishi | Moment Open | Getty Images

Vancouver, Calgary and Montreal in Canada ranked third, fifth and sixth, respectively, on Hopper’s international trend list for 2024.
Winter tourism likely plays a big role, Berg said.
“We’ve seen a real renaissance of Canadian ski destinations,” she said. “They’re rivaling a lot of European ski destinations.”
Plus, air travel to Canada is generally about a third of the price of a trip to Europe, Berg added. More