So, if you're in the market to buy a home, I bet you're probably keeping tabs on everything you hear about the housing market, right? I mean, it's kind of hard not to these days. And you're not just relying on one source of information either. You're tuning into the news, scrolling through your social media feeds, talking to your real estate agent, gossiping with friends and family, and heck, you might even catch a tidbit or two while waiting in line at the supermarket. I bet one thing that's constantly popping up in those discussions is the crazy home prices and mortgage rates. It seems like everyone's talking about it these days.

When you're trying to sort through all the information out there, let's focus on what the data tells us. Here are the two key questions you should be asking yourself about home prices and mortgage rates as you're making your decision:

1. Where Do I Think Home Prices Are Heading?

If you're looking for a trustworthy source of information on home prices, look no further than the Home Price Expectation Survey from Pulsenomics. It's a survey conducted among a group of more than one hundred experts including economists, real estate professionals, and investment and market strategists.

Just got some fresh news for you. The experts in the field have recently shared their thoughts, and they're predicting a slight drop in house prices this year (check out the red in the graph below). Now, here's the key context you should know: the big dips in home prices have already occurred, and in fact, prices are on the rise again in many markets. Plus, let's not forget that the minuscule 0.37% depreciation that the HPES is projecting for 2023 is a far cry from the catastrophic crash that some folks initially predicted. So, things are actually looking pretty good!

Now, let's shift our focus to the future. Take a look at the graph below. See how the green part indicates that the prices have taken a positive turn? Well, it means that they are projected to increase in 2024 and continue to do so in the years to come. According to the HPES, after this year, we can expect the home price appreciation to return to more usual levels for the next few years. So, it's looking promising for the future!

Well, let me break it down for you. This is something you should pay attention to because it directly affects you and your home. Here's the deal: if you make the decision to buy now, you can expect your home to increase in value over time. That means you'll be building up home equity, which is always a good thing. However, if you decide to wait, you might end up paying a higher price for the same home in the future. Don't let that happen to you! Take advantage of these forecasts and make the smart move by buying now.

2. Where Do I Think Mortgage Rates Are Heading?

So, let's chat about what's been going on with mortgage rates lately. Over the past year, they've actually gone up a bit. This happened because of all the economic uncertainty we've been facing, along with some inflation issues. However, the good news is that the latest reports show that inflation has started to calm down a little bit from its highest point. And you know what that means? It's actually a positive sign for both the market and, of course, mortgage rates. Pretty cool, right?

You know, when inflation cools down, it usually causes mortgage rates to drop. And guess what? Some experts are actually saying that mortgage rates will ease up a bit in the next few quarters. They're predicting that the rates will probably settle around 5.5% to 6% on average.

You know, it's really hard to predict where mortgage rates will be in the future, even for the experts. There are just so many different things that can influence what happens, you know? But hey, I can give you some insights into the different possibilities you should think about. Here's what you should consider:

• If you buy now and mortgage rates don’t change: You made a good move since home prices are projected to grow with time, so at least you beat rising prices.

• If you buy now and mortgage rates fall (as projected): You probably still made a good decision because you got the house before home prices appreciated more. And, you can always refinance your home later on if rates are lower.

• If you buy now and mortgage rates rise: If this happens, you made a great decision because you bought before both the price of the home and the mortgage rate went up.

Bottom Line

If you're considering buying a home, it's crucial to stay in the loop about home prices and mortgage rates. While it's impossible to predict the future with absolute certainty, listening to expert projections can provide you with valuable insights. How about we chat and I can connect you with a professional who can give you an expert opinion on what's happening in our local market?