Inside this Issue…
- What’s Going On in the Housing Market Right Now?
- Top Reasons To Own Your Home
- Two Questions To Ask Yourself if You’re Considering Buying a Home
- The Impact of Changing Mortgage Rates
- Homeownership Helps Protect You From Inflation
- Ways To Overcome Affordability
- Challenges in Today’s Housing Market
- The Importance of Getting Pre-Approved
- Things To Avoid After Applying for a Mortgage
- Tips for Making Your Best Offer on a Home
View the Fall 2023 Buyers Guide HERE!
Here’s a sneak peek…
Two Questions To Ask Yourself if You’re Considering Buying a Home
If you’re thinking of buying a home, chances are you’re paying attention to home prices and mortgage rates. Here are the top two questions you need to ask yourself – and what the data says – as you make your decision.
Where Do I Think Home Prices Are Heading?
One reliable place you can turn to for that information is the Home Price Expectation Survey from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists.
According to the latest release, the experts surveyed are projecting between 2.17% and 4.18% appreciation every year for the next five years (see the graph below). The worst price declines are already behind us, and prices are appreciating again.
The green in the graph below shows prices are expected to keep appreciating this year and beyond.
So, why does this matter to you? It means your home will likely grow in value and you should gain home equity in the years ahead, but only if you buy now. If you wait, based on these forecasts, the home will only cost you more later on.
Where Do I Think Mortgage Rates Are Heading?
We know based on the latest reports that inflation has moderated from its peak. This is an encouraging sign for the market and for mortgage rates. Here’s why.
When inflation cools, mortgage rates generally fall in response. This may be why some experts are saying mortgage rates will pull back slightly over the next few quarters.
But not even the experts can say with absolute certainty where mortgage rates will be next year, or even next month. That’s because there are so many factors that can impact what happens. So, to give you a lens into the various possible outcomes, here’s what you should consider:
- If you buy now and mortgage rates don’t change: You made a good move since home prices are projected to grow with time, so at least you beat rising prices.
- If you buy now and mortgage rates fall (as projected): You probably still made a good decision because you got the house before home prices appreciated more. And you can always refinance your home later if rates are lower.
- If you buy now and mortgage rates rise: You made a great decision because you bought before both the price of the home, and the mortgage rate went up.
If you want to buy a home, it’s essential to stay informed on home prices and mortgage rates. Experts can provide helpful projections to guide you. Let’s connect so
you have an expert opinion on our local market.