Thinking About Buying a Home? Ask Yourself These Questions

If you’re thinking of buying a home this year, you’re most likely paying closer attention than regular to the housing market. And you’re getting your details from a variety of channels: the news, social networks, your real estate agent, conversations with friends and loved ones, the list goes on and on. More than likely, home costs and home loan rates are turning up a lot.

Here are the leading two questions you require to ask yourself as you make your decision, consisting of the data that helps cut through the noise.

1. Where Do I Think Home Prices Are Heading?

One dependable place you can turn to for details on home price projections is the Home Price Expectations Survey from Fannie Mae– a study of over one hundred financial experts, property professionals, and investment and market strategists.

According to the most recent release, the specialists are projecting home prices will continue to increase at least through 2028 (see the chart below):

So, why does this matter to you? While the percent of appreciation may not be as high as it was in recent years, what’s essential to focus on is that this survey says we’ll see costs increase, not fall, for at least the next 5 years.

And home costs increasing, even at a more moderate rate, is great news not just for the market, however for you too. It suggests, by buying now, your home will likely grow in worth, and you must gain home equity in the years ahead. If you wait, based on these forecasts, the home will only cost you more later on.

2. Where Do I Think Mortgage Rates Are Heading?

Over the previous year, home loan rates increased up in action to financial unpredictability, inflation, and more. There’s an encouraging indication for the market and home mortgage rates. Inflation is moderating, and here’s why this is such a huge offer if you’re wanting to purchase a home.

When inflation cools, home mortgage rates normally fall in response. That’s exactly what we’ve seen in recent weeks. And, now that the Federal Reserve has signaled they’re pausing their Federal Funds Rate increases and might even cut rates in 2024, experts are even more confident we’ll see home loan rates boil down.

Danielle Hale, Chief Economist at Realtor.com, explains:

“… home loan rates will continue to relieve in 2024 as inflation improves and Fed rate cuts get closer … an essential factor in starting to supply cost relief to homebuyers.”

As a post from the National Association of Realtors (NAR) states:

“Mortgage rates likely have actually peaked and are now falling from their current high of almost 8%… This likely will enhance real estate price and entice more home purchasers to return to the marketplace …”

No one can state with absolute certainty where home loan rates will go from here. But the current decrease and the most recent choice from the Federal Reserve to stop their rate boosts, signals there’s hope on the horizon. While we might see some volatility occasionally, cost must improve as rates continue to alleviate.

Bottom Line

If you’re thinking about buying a home, you require to know what’s anticipated with home costs and mortgage rates. While nobody can say for specific where they’ll go, making sure you have the most recent info can assist you make an informed decision. Let’s connect so you can keep up to date on what’s taking place and why this is such excellent news for you.

Thinking About Buying a Home? And home rates increasing, even at a more moderate speed, is good news not just for the market, but for you too. It implies, by purchasing now, your home will likely grow in value, and you need to acquire home equity in the years ahead. Over the past year, mortgage rates increased up in response to financial unpredictability, inflation, and more., you need to understand what’s expected with home rates and home loan rates.