Hey, if you're thinking about buying a home this year, chances are you're really keeping an eye on the housing market. You're probably soaking up info from all over the place - the news, social media, your real estate agent, chats with friends and family, and the rest. It seems like everyone's talking about home prices and mortgage rates, right?

When you're trying to make a decision, there are two key questions you should ask yourself. These questions will help you cut through all the noise and get to the heart of the matter.

1. Where Do I Think Home Prices Are Heading?

Oh, if you want to check out some trustworthy home price forecasts, you should definitely take a look at the Home Price Expectations Survey by Fannie Mae. They gather insights from more than a hundred economists, real estate experts, and investment and market strategists. It's a pretty good go-to for that kind of info.

So, based on the latest info, the experts reckon that home prices will keep going up until at least 2028.

Why is this important to you? Even though the percentage of appreciation might not be as high as it was in the past few years, the key thing to take away is that according to this survey, prices are expected to go up, not down, for at least the next 5 years.

With home prices going up, even if it's not as fast as before, it's actually great news for everyone, including you. Basically, if you buy a home now, it's likely that its value will increase, and you'll build equity over time. But if you hold off, it looks like homes will just get pricier down the road.

2. Where Do I Think Mortgage Rates Are Heading?

In the last year, mortgage rates went up because of all the economic uncertainty and inflation. But guess what? There's some good news for the housing market and mortgage rates. Inflation is starting to level off, and let me tell you why that's a game-changer if you're in the market to buy a home.

When inflation cools down, usually mortgage rates drop. And that's exactly what's happened lately. Plus, the Federal Reserve has hinted that they're going to take a break from raising the Federal Funds Rate and might even lower it in 2024. Because of this, experts are pretty sure that mortgage rates will decrease even more.

““. . . mortgage rates will continue to ease in 2024 as inflation improves and Fed rate cuts get closer. . . . a key factor in starting to provide affordability relief to homebuyers.””

— Danielle Hale, Chief Economist at Realtor.com

Have you seen that recent article from the National Association of Realtors (NAR)? They've got some great insights on the current real estate market.

““Mortgage rates likely have peaked and are now falling from their recent high of nearly 8%. . . . This likely will improve housing affordability and entice more home buyers to return to the market . . .””

— National Association of Realtors (NAR)

Hey, it's hard to predict for sure where mortgage rates are headed. But with the recent drop and the Fed deciding to hold off on raising rates, it seems like things might be looking up. Although there might be some ups and downs, it's likely that affordability will get better as rates keep going down.

Bottom Line

If you're considering buying a home, it's essential to stay in the know about home prices and mortgage rates. Although we can't predict the future, having the most current info can empower you to make a well-informed choice. Let's chat so I can keep you updated on the latest developments and explain why it's great news for you.