If you’re considering moving this year, two housing market factors are probably on your mind: home prices and mortgage rates. You’re wondering what’s going to happen next. Is it worth it to move now,
or is it better to wait it out?
The only thing you can do is make the best decision based on the latest information available. So, here’s what experts are saying about both prices and rates.
1. What’s Next for Home Prices?
One reliable source for home information price forecasts is the Home Price Expectations Survey from Fannie Mae, conducted by over one hundred economists, real estate experts, and investment and market strategists.
According to the most recent release, experts are projecting home prices will continue to rise at least through 2028 (see the graph below):
While the percent of appreciation varies year-to-year, this survey says prices will rise (not fall) for at least the next five years and at a much more normal pace.
What does that mean for your move? If you buy now, your home will likely grow in value, and you should gain equity in the years ahead. But, based on these forecasts, if you wait and prices continue to climb, the price of a home will only be higher later on.
2. When Will Mortgage Rates Come Down?
This is the million-dollar question in the industry. And there’s no easy way to answer it. That’s because several factors are contributing to our volatile mortgage rate environment. Odeta Kushi, Deputy Chief Economist at First American, explains:
“Every month brings a new set of inflation and labor data that can influence the direction of mortgage rates. Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates.”
What happens next will depend on where each factor goes from here. Experts are optimistic rates should still come down later this year but acknowledge changing economic indicators will continue to have an impact. As a CNET article says:
“Though mortgage rates could still go down later in the year, housing market predictions change regularly in response to economic data, geopolitical events and more.”
So, if you’re ready, willing, and able to afford a home right now, partner with a trusted real estate advisor to weigh your options and decide what’s right for you.
Key Takeaway
Let’s connect to ensure you have the latest information on home prices and mortgage rate expectations. Together, we’ll discuss what the experts say so you can make an informed decision about your move.
