If you’re in the market to buy a home, you’re likely bombarded with information. It can be overwhelming to separate fact from fiction.
Fear not — we’re here to cut through the noise and provide you with the most important insights. Let’s explore the top two questions you should ask as you navigate the housing market:
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Where Do I Think Home Prices Are Heading?
For reliable information on home prices, turn to the Home Price Expectation Survey. This survey by Pulsenomics gathers insights from a panel of economists, real estate experts, and market strategists. According to the latest release, experts project a slight depreciation this year. However, it’s crucial to consider the context. The worst price declines are behind us. Thus, many markets are experiencing appreciation once again. In fact, the small 0.37% depreciation projected for 2023 is far from the crash some initially feared. Looking ahead, prices are expected to appreciate in 2024 and beyond. In fact, the survey forecasts a return to more normal levels of growth. What does this mean for you? Buying a home now equals potential value and equity growth. Waiting could mean a higher cost down the line.
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Where Do I Think Mortgage Rates Are Heading?
Over the past year, rates have risen due to economic uncertainty and inflation. However, recent reports show a moderation in inflation. This is a positive sign for the market and mortgage rates. When inflation cools, mortgage rates generally fall in response. Some experts even predict a slight pullback in rates over the next few quarters, settling around 5.5% to 6% on average. Of course, predicting mortgage rates is complex due to various factors. Consider these scenarios:
- Buying now with unchanged rates. A smart move, as home prices are projected to grow, allowing you to beat rising prices.
- Buying now with falling rates (as projected). Still a good decision to get the house before prices appreciate more. Plus, you can always refinance if rates drop.
- Buying now with rising rates. A great decision. You will secure the home before both price and mortgage rates increase.
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In summary, as a buyer, understanding home prices and mortgage rates is crucial. While no one can absolutely predict the future, expert projections provide valuable insights. To navigate the market effectively, rely on a trusted real estate professional. Connect with your local Surterre agent today at SurterreProperties.com.
