If purchasing a home is on your mind this year, you’re likely keeping a keen eye on the housing market. You gather information from various sources like the news, social media, and conversations with friends and family. Home prices and mortgage rates are probably frequent topics in these discussions.
Here are two essential questions to ponder, along with valuable data to help you navigate through the noise:
Where Are Home Prices Heading?
A reliable source for insights into home price forecasts is the Home Price Expectations Survey by Fannie Mae. Most experts predict that home prices will keep rising until at least 2028. What’s crucial is recognizing that while the rate of growth may not match recent years, the forecast indicates a continuous increase in prices for the next five years.
Rising home prices, even at a steadier pace, bode well not just for the market but for you as a potential homeowner. Buying now means your home is likely to appreciate, building equity over time. Waiting might mean paying more later on.
Where Are Mortgage Rates Heading?
Recent economic uncertainties led to a rise in mortgage rates. However, a promising trend is emerging. With inflation showing signs of cooling, mortgage rates are expected to follow suit. The Federal Reserve’s indication of pausing rate increases and potential cuts in 2024 further fuels expectations for declining mortgage rates. This shift could enhance affordability for home buyers.
While the future of mortgage rates isn’t set in stone, recent declines and the Fed’s decisions offer hope. Though some fluctuations might occur, improving affordability could accompany easing rates. If home buying is on your radar, understanding projected home prices and mortgage rates is crucial. While certainty is impossible, staying informed with the latest updates empowers you to make a knowledgeable decision. Let’s connect to keep you updated on these developments and why they present an encouraging opportunity for you.
