Questions to Ask Yourself if Buying a Home in

Todays Current Market

Thinking of buying a home? In the midst of all the information swirling around about the housing market, it's important to cut through the noise and focus on what really matters. To help you make an informed decision, let's delve into the data and address the two key questions you should be asking yourself: What direction are home prices headed in? And what about mortgage rates?

Where Do I Think Home Prices Are Heading?

To gain insights into future home prices, turn to the Home Price Expectation Survey (HPES) conducted by Pulsenomics. This survey taps into the expertise of over one hundred economists, real estate experts, and investment and market strategists on a national level.

The latest release of the HPES indicates a projection of slight depreciation for this year (indicated by the red in the graph below). However, it's crucial to consider the broader context. The most significant declines in home prices have already occurred, and in many markets, prices are rebounding. It's worth noting that the small 0.37% depreciation projected by the HPES for 2023 is far from the catastrophic crash that some initially feared.

Looking ahead, the graph below reveals a positive trend. Prices have turned a corner, and appreciation is expected in 2024 and beyond (indicated by the green). Beyond this year, the HPES forecasts a return to more normal levels of home price appreciation for several years.

By relying on the insights provided by the HPES and understanding the current and projected trends in home prices, you can make a more informed decision about your home purchase.

Remember, the housing market is influenced by a multitude of factors, and it's essential to consider other variables like mortgage rates and local market conditions. Stay informed and seek guidance from trusted sources such as your real estate agent, who can provide personalized advice based on your specific situation.

Ultimately, arming yourself with accurate and reliable information will empower you to navigate the housing market with confidence and make the best decision for your future.

Where Do I Think Mortgage Rates Are Heading?

n the ever-evolving landscape of the past year, mortgage rates have experienced an upward trajectory due to various factors such as economic uncertainty and inflation. However, recent reports indicate a moderation in inflation from its peak, bringing positive implications for both the market and mortgage rates. Let's explore why this development is significant.

One notable trend is that when inflation subsides, mortgage rates tend to follow suit, declining in response. This correlation has led experts to suggest that mortgage rates may experience a slight pullback in the upcoming quarters, ultimately stabilizing at an average range of approximately 5.5% to 6%.

Navigating the uncertainty of mortgage rates can be a daunting task, even for experts. The reality is that predicting future rates, whether it's for next year or next month, is a complex endeavor influenced by numerous factors. Nevertheless, gaining insight into potential outcomes is crucial. Here's what you should take into account:

1. Buying now with unchanged mortgage rates: This can be a wise move, as home prices are expected to appreciate over time. By purchasing now, you position yourself favorably against rising prices.

2. Buying now with projected falling mortgage rates: Opting to buy now remains a smart decision, as you secure the house before further home price appreciation occurs. Additionally, if rates do drop as projected, you always have the option to refinance your home later to take advantage of lower rates.

3. Buying now with potential rising mortgage rates: Should mortgage rates rise, purchasing now becomes a highly advantageous choice. You not only acquire the home before both home prices and mortgage rates increase but also secure a favorable rate for the long term.

In summary, if you're contemplating a home purchase, it's essential to stay informed about home prices and mortgage rates. While no one can predict their precise trajectory, expert projections provide valuable insights. To gain a comprehensive understanding of your local market, it's advisable to connect with a professional who can offer an expert opinion and guide you through the process.

By equipping yourself with the facts and seeking guidance from trusted experts, you can confidently navigate the complexities of home buying and make informed decisions aligned with your financial goals.

We can assist you in knowing the latest market information where you are purchasing your home - we know that each city and even neighborhood can have different stats - so perhaps one is selling for over list price while in another neighborhood you may pay list price but be able to get the seller to pay some closing cost for you.  This information will help you make a solid offer that can help you win the home.  It also allows for you to have the best up-to-date knowledge to help your family make the best financial decison.