With home prices rising and mortgage rates fluctuating, it’s no surprise that many people are wondering what the rest of the year will bring — and whether now is a smart time to make a move. The good news? You don’t have to guess. Trusted industry experts are sharing their latest market projections, and the outlook may be more encouraging than you think.
Leading housing analysts have begun releasing their forecasts for the remainder of the year. Their insights offer not only clarity, but also a sense of optimism for both buyers and sellers. As Business Insider puts it:
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”
Here’s what that means for you:
1. Mortgage Rates May Ease (Even If Only Slightly)
While we’re not expecting a dramatic drop, most experts anticipate a gradual decline in mortgage rates as the economic picture becomes more stable. Based on current trends and data, here’s what they predict for the end of the year (see graph below):
Even a modest dip in rates is a step in the right direction. A small decrease can make a noticeable difference in your monthly mortgage payment — and that added flexibility can give your budget a little more breathing room.
That said, it’s important to remember that mortgage rates are influenced by a wide range of factors, including inflation, employment trends, and overall economic conditions. Because of that, some ups and downs are still likely. Instead of trying to time the market perfectly, the best approach is to stay informed and work with a trusted expert who can help you make the most of the conditions when you’re ready.
2. Inventory Is Expected To Keep Climbing
Housing inventory has already seen noticeable improvement this year. A big part of that growth is due to homeowners deciding they can’t wait on the sidelines any longer. Many have held off, hoping for better mortgage rates, but at some point, life takes priority — whether it’s a growing family, a new job, or the need for a change.
That’s why we’re seeing more listings hit the market, and experts say that trend is likely to continue. As Lance Lambert, Co-founder of ResiClub, notes:
“The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher.”
And if mortgage rates ease up as projected, that could motivate even more homeowners to list — giving buyers more choices and increasing the chances of finding the right fit.
3. Home Price Growth Is Easing
As more homes become available, the pressure pushing prices higher is starting to ease. Experts still expect home values to rise this year, but not at the rapid pace we’ve seen in the past. Thanks to growing inventory, that appreciation is expected to be more moderate and manageable.
In fact, when you average the latest projections from seven leading industry sources, they’re calling for about a 2% increase in home prices over the course of the year.
That’s a sign of a healthier, more balanced market — one where buyers have a bit more breathing room, and sellers can still benefit from ongoing appreciation.
That means you could start to see some welcome relief from the steep rise in home prices. When you pair this more moderate price growth with projected declines in mortgage rates, it could add up to more buying power — and more opportunity — in the months ahead.
Of course, real estate is local. While national trends point to improvement, every market moves at its own pace. Some areas may see prices continue to climb, while others could level off or even dip slightly depending on local inventory and demand. That’s why it’s important to have a knowledgeable local agent in your corner.
Bottom Line
If a move is on your mind this year, now’s the time to start planning. Let’s connect so we can look at the latest data in your area and build a strategy that works for your goals.
