Two Questions To Ask Yourself if You’re Considering Buying a Home

If you're considering buying a home, it's important to focus on two key questions: where home prices are heading and where mortgage rates are heading. Here's what the data says:

1. Home Prices: According to the Home Price Expectation Survey (see graph below), experts project slight depreciation this year, but the worst declines are behind us. Prices are already appreciating in many markets, and they are expected to continue appreciating in 2024 and beyond. This means your home is likely to grow in value, so buying now would be advantageous compared to waiting.

       2. Mortgage Rates: Over the past year, mortgage rates have risen due to economic uncertainties. However, inflation has moderated, which is a positive sign. When inflation cools, mortgage rates tend to fall. Some experts predict a slight pullback in rates over the next few quarters, settling around 5.5% to 6% on average.

Ultimately, while no one can predict these factors with certainty, expert projections provide valuable insights. Reach out to a real estate professional for an expert opinion on your local market.