What's Next for Home Prices and Mortgage Rates?

If you're considering making a move this year, you're likely pondering two crucial housing market factors: home prices and mortgage rates. Understanding the trends and expert forecasts can help you make informed decisions on whether to buy now or wait. Here's what the latest data and expert opinions reveal about home prices and mortgage rates in 2024. 

What's Next for Home Prices?

A key resource for home price forecasts is the Home Price Expectations Survey from Fannie Mae. This survey aggregates insights from over a hundred economists, real estate experts, and market strategists. The most recent release indicates that home prices are expected to continue rising at least through 2028. 

While the rate of appreciation may fluctuate annually, the overall trend points to consistent price increases. This projection suggests that purchasing a home now could be beneficial, as your property's value is likely to appreciate over time. Waiting might mean buying at higher prices later, potentially reducing your purchasing power and overall equity gains. 

When Will Mortgage Rates Come Down?

The trajectory of mortgage rates is a complex issue influenced by various economic factors. 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 of mortgage rates hinges on these economic indicators. Although experts are optimistic that rates might decrease later this year, they caution that changes in economic data and geopolitical events will continue to impact rates. As highlighted by a CNET article:

"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."

Making your Move: Buy Now or Wait?

If you're ready, willing, and able to buy a home now, it's essential to consider these forecasts and partner with a trusted real estate advisor. Together, you can navigate the current market conditions and make the best decision for your circumstances.

In Conclusion

To ensure you have the latest information on home prices and mortgage rates, connect with a real estate expert. By staying informed and weighing expert opinions, you can make a confident decision about your move in 2024.

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