What’s Next for Home Prices and Mortgage Rates?

If you’re contemplating a move this year, two critical factors likely top your considerations: home prices and mortgage rates. You’re keen on understanding their future trajectory and whether acting now or waiting is prudent.

The decision hinges on the latest insights available. Here’s what experts are forecasting regarding both home prices and mortgage rates.

What’s Next for Home Prices?

A reliable source for home price forecasts is the Home Price Expectations Survey by Fannie Mae, encompassing insights from over one hundred economists, real estate experts, and market strategists.

According to the latest survey, experts project a sustained rise in home prices, extending at least until 2028 (refer to the graph below):

Houses for sale in San Antonio will experience varying annual appreciation rates, but overall, prices are anticipated to climb steadily rather than decline over the next five years.

What does this mean for potential buyers? Purchasing a property now will likely yield appreciation and build equity in the coming years. Conversely, delaying a purchase may result in higher home prices in the future, as indicated by current forecasts.

When Will Mortgage Rates Come Down?

The question of mortgage rate reduction remains pivotal within the industry, yet it lacks a straightforward answer. The volatility stems from multiple factors influencing the mortgage rate environment. Odeta Kushi, Deputy Chief Economist at First American, elaborates:

“Monthly updates on inflation and labour market conditions play significant roles in determining mortgage rate trends. While ongoing inflation moderation and economic slowdowns might push rates down, any indicators suggesting potential inflationary pressures could conversely lead to rate hikes.”

The trajectory ahead hinges on the future direction of these factors. Analysts remain cautiously optimistic about potential rate decreases later this year but acknowledge that economic shifts and geopolitical events continue to exert influence. As highlighted by CNET:

“Although prospects for a house for sale in San Antonio could improve in the latter half of the year, predictions regarding the housing market are subject to frequent revision in response to evolving economic indicators and global developments.”

Therefore, collaborating with a trusted real estate advisor is advisable if you’re financially prepared and eager to invest in a property. They can provide personalized guidance tailored to current market dynamics and assist you in making a well-informed decision.

Bottom Line

Engage with a reliable real estate professional to stay updated on the latest trends in houses for sale in San Antonio and forecasts for mortgage rates. With expert insights, you can navigate the market effectively and confidently and determine the best action for your upcoming move.