Are you contemplating a move this year? If so, you're probably curious about two critical aspects of the housing market: home prices and mortgage rates. The big question is whether it's better to buy now or wait it out. To help you make an informed decision, here’s the latest expert insight on both.

Home Prices: What to Expect?

One of the best resources for home price forecasts is the Home Price Expectations Survey by Fannie Mae. This survey pools insights from over a hundred economists, real estate experts, and market strategists.
According to the most recent data, home prices are expected to keep rising at least through 2028. Although the rate of appreciation will vary year-to-year, the overall trend points to continued growth. Here’s why this matters:

• Equity Growth: Buying a home now means you'll likely see your home's value increase over the years, building equity.

• Future Costs: Waiting could mean paying more for a home later as prices continue to climb.

In essence, if you’re considering a move, acting sooner rather than later might be financially beneficial.

Mortgage Rates: When Will They Drop?

The direction of mortgage rates is the million-dollar question. Several factors, including inflation, economic performance, and geopolitical events, contribute to the current volatile 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.”

While experts are optimistic that rates might decrease later this year, they caution that ongoing economic changes will continue to play a significant role. As a recent CNET article puts it:

“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, it's wise to partner with a trusted real estate advisor. They can help you navigate these uncertainties and decide the best course of action based on the latest information.

Let’s connect to ensure you have all the current insights on home prices and mortgage rates. Together, we'll review what the experts are saying so you can make the best decision for your move.