If you’re considering moving this year, you’re likely concerned about two key housing market factors: home prices and mortgage rates. You might be wondering what will happen next and whether it’s better to move now or wait.
The best approach is to make an informed decision based on the latest available information. Here’s what experts are currently saying about prices and rates.
1. What’s Next for Home Prices?
For reliable information on home price forecasts, you can refer to the Home Price Expectations Survey by Fannie Mae. This survey includes insights from over a hundred economists, real estate experts, and investment and market strategists.
The latest release indicates that experts expect home prices to continue rising at least through 2028 (see the graph below):
While the rate of appreciation varies from year to year, the survey indicates that home prices will rise (not fall) for at least the next five years, and at a more moderate pace.
What does this mean for your move? If you buy now, your home is likely to increase in value, allowing you to build equity over time. However, if you wait and prices continue to rise as forecasted, homes will be more expensive in the future.
2. When Will Mortgage Rates Come Down?
This is the million-dollar question in the industry, and there’s no simple answer. The volatile mortgage rate environment is influenced by multiple factors.
The future of mortgage rates will depend on how these factors evolve. Experts are hopeful that rates may decrease later this year, but they acknowledge that economic indicators will continue to play a significant role. As a CNET article notes:
“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.”
If you’re ready, willing, and able to buy a home now, consider partnering with a trusted real estate advisor to explore your options and make the best decision for your situation.
Bottom Line
Let’s connect to ensure you have the most up-to-date information on home prices and mortgage rate expectations. Together, we’ll review expert insights so you can make an informed decision about your move.
