Source:  Keeping Current Matters

 

If you’re considering making a move this year, home prices and mortgage rates are most likely your top two concerns. The big question is, what does the future hold and should you make a move now or hold off.  Well, you’re not alone. This is quite a dilemma for many home buyers.

Ultimately, the best course of action is to make an informed decision based on the most up-to-date information. Here's the scoop from industry experts on both fronts.

 

1.  What Lies Ahead for Home Prices?

For reliable insights into future home price trends, one valuable resource is the Home Price Expectations Survey conducted by Fannie Mae. This survey gathers input from a group of over one hundred economists, real estate experts, and market strategists. The latest buzz suggests that home prices are expected to keep rising, possibly until 2028 (see the graph below for more details).

 

While the rate of appreciation may vary annually, this survey suggests that home prices will continue to increase, rather than decrease, for at least the next 5 years, albeit at a more moderate pace.

What does this mean for you? Buying now is likely to result in your home gaining value and building equity over time. However, based on these projections, delaying your purchase could mean facing higher home prices down the line.

 

2.  What About Mortgage Rates?

The question on everyone's mind in the industry is when mortgage rates will decrease, but there's no simple answer. The volatile mortgage rate environment is influenced by various factors, as explained by Odeta Kushi, Deputy Chief Economist at First American: 

"Every month, we get hit with new data on stuff like inflation and jobs, and that messes with mortgage rates. If inflation slows down, the economy takes a breather, or there's some international drama, rates could dip. But if the data points towards inflation getting worse, rates might go up."

So, what's next? Well, it all depends on where these factors go from here. Experts think rates might go down later this year, but they're keeping an eye on all the economic signals. As one CNET article puts it:

"Mortgage rates might still go down in the future, but predictions about the housing market change all the time, depending on what's happening in the world."

If you're itching to make a move now and you've got the funds to do it, talk to a real estate pro you trust. Our agents at Emmer Real Estate Group can help you figure out if it's the right time for you to jump into the market.

 

In Conclusion

Make an informed decision by getting in touch with an Emmer Real Estate agent. We will go over the most up-to-date information on home prices and mortgage rates so you can decide what makes sense for your next move.