If you're considering a move this year, you're likely focused on two key aspects of the housing market: home prices and mortgage rates. You're weighing what the future holds and debating whether it's the right time to make a move or if it's advisable to hold off for now.

The best course of action is to make an informed decision using the most up-to-date information. Let's delve into what experts are currently indicating about both property prices and interest rates.

1. What’s Next for Home Prices?

Have you heard of the Home Price Expectations Survey by Fannie Mae? It gathers insights from a vast pool of professionals like economists, real estate experts, and market strategists to provide reliable home price forecasts.

Based on the latest data, analysts anticipate that home prices will keep increasing at least until 2028 as shown in the graph below:

Based on this survey, home prices are projected to increase steadily over the next five years, albeit at a more typical rate of appreciation.

If you purchase a home now, it's probable that its value will increase, leading to equity growth in the future. However, considering these projections, delaying your purchase might result in even higher home prices later.

2. When Will Mortgage Rates Come Down?

The million-dollar question in the industry is challenging to answer due to various factors causing the current volatile mortgage rate environment. Deputy Chief Economist at First American, Odeta Kushi, sheds light on this issue.

““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.”
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— First American

According to a CNET article, experts are optimistic that rates should decrease later this year, emphasizing the significant influence of evolving economic indicators on this trend. The direction these factors take will ultimately determine the trajectory of future developments in the market.

““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.”
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— CNET

If you are prepared and financially able to purchase a home at this moment, collaborate with a reliable real estate advisor to explore your choices and determine the best course of action for you.

Bottom Line

Let's ensure you are up-to-date on current home prices and mortgage rate predictions. We can review expert insights together to help you make well-informed decisions regarding your next move.