If you’re thinking of making a move this year, there are two housing market factors that are probably on your mind: mortgage rates and home prices. You’re wondering what’s going to happen next. And you’re wondering if it’s worth it to move now, or better to wait it out and time the market. Frankly, in my opinion, timing the market that appears to change daily is a waste of time. Why not get a bench mark home value of your valuable asset to be informed. Or if you are curious and want to check out your Santa Fe area, subdivision, neighborhood or zip code, you can here with one click and learn what is happening.
The only thing you can really do is make the best decision you can based on the latest information available. So, here’s what some experts are saying about both prices and rates nationally in the housing market. Here are some of the trends happening in housing. By the way, home prices in New Mexico have appreciated over 60% in the past five years! This is another reason to know and track your home value and local market!
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What’s Next for Home Prices?
One reliable place you can turn to for information on home price forecasts is the Home Price Expectation Survey from Fannie Mae – a survey of over one hundred economists, real estate experts, and investment and market strategists.
According to the most recent release, experts are projecting home prices will continue to rise at least through 2028 (see the graph below):
While the percent of appreciation varies year-to-year, this survey says we’ll see prices rise (not fall) for at least the next 5 years, and at a much more normal pace.
What does that mean for your move? If you buy now, your home will likely grow in value and you should gain equity in the years ahead. But, based on these forecasts, if you wait and prices continue to climb, the price of a home will only be higher later on.
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When Will Mortgage Rates Come Down?
This is the million-dollar question in the industry. And there’s no easy way to answer it. That’s because there are a number of factors that are contributing to the volatile mortgage rate environment we’re in. 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.”
What happens next will depend on where each of those factors goes from here. Experts are optimistic rates should still come down later this year, but acknowledge changing economic indicators will continue to have an impact. As a CNET article says:
“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.”
So, if you’re ready, willing, and able to afford a home right now, or wondering what is best and how to weigh your options and then let’s decide what’s right for you.
Bottom Line
Let’s connect to make sure you have the latest information available on home prices and mortgage rate expectations. Together we’ll go over what the experts are saying so you can make an informed decision on your move. There is no fee or obligation for a consultation with me as I am passionate about sharing my knowledge. Simply either text or call 505.660.4541 me to discuss your situation. You will be surprised at what is happening in real estate today.Thank you for reading, Emily Medvec