Thinking about buying a home this year? You’re likely keeping a close eye on the housing market. With information coming at you from news, social media, real estate agents, and friends, it can be overwhelming. To help you make your decision, focus on these two important questions:
1. What’s Happening with Home Prices?
Wondering about future home prices? Check out the Home Price Expectations Survey from Fannie Mae. This survey gathers insights from over a hundred economists and real estate experts.
Their latest findings? Home prices are expected to keep rising until at least 2028. This is great news for you as a buyer. Even if prices don’t go up as fast as they have recently, they are still going up. This means buying a home now could be a smart investment – your home’s value is likely to increase. If you wait, you might end up paying more.
2. What About Mortgage Rates?
Mortgage rates went up last year due to economic ups and downs. But there’s good news on the horizon. As inflation slows down, mortgage rates are starting to fall. The Federal Reserve is also putting a hold on increasing rates, and they might even lower them in 2024.
Danielle Hale from Realtor.com explains that as inflation improves and the Federal Reserve potentially cuts rates, mortgage rates should become more affordable for homebuyers. The National Association of Realtors (NAR) agrees, noting that mortgage rates have likely peaked and are now decreasing. This means buying a house could become more affordable.
While no one can predict mortgage rates precisely, the current trends and decisions from the Federal Reserve suggest that things might get easier for homebuyers.
Final Thoughts
When thinking about buying a home, it’s important to keep up with home prices and mortgage rates. While we can’t say exactly what will happen, having the latest information helps you make the best decision. Stay connected for updates on the housing market and why now might be a great time for you to buy.