If you’re planning to buy a Triangle area home soon, you’re probably keeping a keen eye on the housing market. Your sources of information might range from news and social media to discussions with real estate agents, friends, and family. Topics like home prices and mortgage rates are likely at the forefront of these conversations.
Here are two crucial questions to ponder as you navigate your home-buying journey in Raleigh, along with relevant data to help guide your decision-making.
1. What are the Predictions for Home Prices?
A reliable source for home price forecasts is the Home Price Expectations Survey by Fannie Mae. This survey pools insights from over a hundred economists, real estate experts, and investment and market strategists.
The latest survey indicates that experts expect home prices to continue rising at least through 2028 (refer to the graph below):
Why does this matter to you? Even though the rate of price appreciation might not match recent years’ highs, the key takeaway is the anticipated continued rise in home prices over the next five years.
This trend signifies that purchasing a Triangle area home now could lead to value appreciation and home equity growth. However, waiting could result in higher costs later due to these projected price increases.
2. What is the Outlook for Mortgage Rates?
In the past year, mortgage rates have surged due to economic uncertainties and inflation. However, there’s positive news for the housing market and mortgage rates. As inflation eases, mortgage rates typically follow suit, a trend observed in recent weeks. With the Federal Reserve indicating a pause in Federal Funds Rate hikes and possible rate cuts in 2024, experts are optimistic about declining mortgage rates.
Danielle Hale, Chief Economist at Realtor.com, explains:
. . . mortgage rates will continue to ease in 2024 as inflation improves and Fed rate cuts get closer. . . . a key factor in starting to provide affordability relief to homebuyers.”
The National Association of Realtors (NAR) echoes this sentiment:
Mortgage rates likely have peaked and are now falling from their recent high of nearly 8%. . . . This likely will improve housing affordability and entice more home buyers to return to the market . . .”
While the future of mortgage rates cannot be predicted with absolute certainty, the recent decrease and the Federal Reserve’s latest stance suggest potential affordability improvements. Though some volatility may persist, overall, the trend seems favorable for homebuyers.
Bottom Line
When considering a Triangle area home purchase, staying informed about home prices and mortgage rates is crucial. While precise predictions are impossible, being well-informed can assist in making a well-rounded decision. Contact Linda Craft Team Realtors to ensure you have the latest information and understand why this is promising news for prospective homeowners.