As the housing market evolves, individuals contemplating buying or selling a home often encounter a barrage of conflicting information. To address these common concerns, let’s delve into the three most frequently asked questions and shed light on the latest market trends.
Here are the top 3 questions people are asking about today’s housing market, and the data to help answer them.
1. What’s Next for Mortgage Rates?
Mortgage rates have risen in recent years, impacting affordability for aspiring homeowners. While predicting future rates with absolute certainty is impossible, historical trends offer valuable insights.
Traditionally, mortgage rates track inflation closely. With inflation gradually tapering off, the Federal Reserve has paused its rate hikes, signaling potential decreases in mortgage rates. While rates have fluctuated recently, experts anticipate a downward trend in 2024.
And in some ways, we’ve started to see hints of slightly lower mortgage rates in recent weeks. But it’s certainly been volatile and will likely continue to be that way going into next year. Some ongoing variation is to be expected, but the anticipation is, that in 2024, we’ll see a downward trend. As Aziz Sunderji, Strategist at Home Economics, says:
“The bottom line is that interest rates are likely to be lower-perhaps even lower than many optimists think – in the weeks and months to come.”
2. Where Are Home Prices Headed?
Despite fears of a price crash, home values continue to rise in most parts of the country. Experts predict this trend will persist, albeit at a slower, more sustainable pace. The Home Price Expectation Survey from Pulsenomics corroborates this outlook, with a panel of experts expressing confidence in continued price appreciation over the coming years.
3. Is a Recession Around the Corner?
Recession concerns have lingered for the past few years, but recent data offers reassurance. The Wall Street Journal regularly polls experts on this topic, and initially, a recession was predicted by now. However, current indicators have led experts to revise their forecasts, with a majority now believing a recession is increasingly unlikely.
This positive news bodes well for the housing market. While the expert consensus is not unanimous, the shift towards avoiding a recession is a significant development.
Amidst the uncertainty surrounding the housing market, the available data indicates reasons for optimism. As we approach the new year, let’s engage in further discussions to address your specific housing market concerns and tailor strategies aligned with your goals.