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If you're considering making a move this year, two significant factors are likely on your mind: home prices and mortgage rates. You're probably wondering what the future holds and whether it's better to move now or wait.
At Evergreen Home Loans, we understand the importance of making informed decisions based on the latest information. Here’s what experts are currently saying about home prices and mortgage rates.
What’s Next for Home Prices?
One reliable source for home price forecasts is the Home Price Expectations Survey from Fannie Mae. This survey gathers insights from over one hundred economists, real estate experts, and market strategists. According to the latest survey, experts predict that home prices will continue to rise at least through 2028:
While the rate of appreciation varies year-to-year, the survey indicates that home prices are expected to increase (not decrease) for at least the next five years, albeit at a more moderate pace.
What does this mean for your move? If you buy now, your home will likely appreciate in value, allowing you to build equity in the coming years. Conversely, if you wait and prices continue to rise, you may face higher home prices later on.
When Will Mortgage Rates Come Down?
This is the million-dollar question. The current mortgage rate environment is influenced by several factors, making it difficult to predict future trends. Odeta Kushi, Deputy Chief Economist at First American, explains:
“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.”
The future direction of mortgage rates will depend on how these factors evolve. Experts remain optimistic that rates might decrease later this year, but they also acknowledge that changing economic indicators will continue to impact rates. As CNET notes:
“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.”
If you’re ready, willing, and able to afford a home right now, it's wise to partner with a trusted Evergreen Loan Officer. They can help you weigh your options and make the best decision based on current market conditions.
Evergreen offers a diverse array of innovative products designed to enhance your home buying experience. Contact your local Evergreen Loan Officer for a complimentary consultation today!
Source: Keeping Current Matters
