Keeping Current Matters (KCM) recently published a Blog Post about the Top 3 questions that are on people’s minds and I knew many of you would be interested in knowing more. KCM provides local real estate market data and national insights to market trends. Check out what they had to say here:
“The housing market can be a confusing place, especially when you're bombarded with conflicting information from various sources. You might hear one thing from your friends, read another in the news, and come across something entirely different on social media. If you're thinking about buying or selling a home, this can leave you with a lot of unanswered questions. That's where a reliable local real estate agent comes in – they can provide clarity amidst the chaos.
Here, we'll tackle the three most common questions people have about the housing market right now, and we'll break down the answers with straightforward explanations.
What’s Next for Mortgage Rates?
Mortgage rates have been making headlines for being higher than they've been in a while. If you're considering buying a home, this can affect how much you can afford. Many people want to know if mortgage rates will keep going up or if they'll come down. While we can't predict the future with absolute certainty, we can look at historical patterns for some clues.
Mortgage rates have a close relationship with inflation – when inflation goes up, mortgage rates tend to rise too. Over the past year, inflation increased, which led to higher mortgage rates. However, the good news is that inflation is now easing. Because of this, the Federal Reserve has decided to stop increasing their federal funds rate, which makes many experts believe that mortgage rates will begin to come down.
In recent weeks, there have been hints of slightly lower mortgage rates, though the market can still be a bit unpredictable. We may see some ups and downs in the near future, but the general expectation is that by 2024, we'll see a more consistent decrease in rates. As Aziz Sunderji, Strategist at Home Economics, puts it: "In the coming weeks and months, interest rates are likely to be lower – maybe even lower than many optimistic people think."
Where Are Home Prices Headed?
There was a lot of concern that home prices might plummet this year, but the data tells a different story. In reality, home prices are continuing to rise in most areas of the country. Experts believe this upward trend will continue, but at a more moderate pace – which is actually a good thing. This means that while home prices are still going up, they are doing so at a more sustainable and manageable rate.
Recession talk has been circulating for a while now, but there's some positive news here. The Wall Street Journal regularly surveys experts about the possibility of a recession. At this time last year, most experts believed we would have already experienced a recession by now. However, as they look at the current indicators, many are changing their minds and suggesting that a recession is becoming less likely.
This is particularly important for the housing market. While there's still some debate among experts, the majority now think that we've probably avoided a recession.
Bottom Line
In summary, the data suggests that there's no need for excessive worry – in fact, there are more reasons to be optimistic. If you have questions about the housing market as we head into the new year, don't hesitate to reach out to a local real estate agent. They can provide you with personalized guidance and help you navigate the changing housing market with confidence. Your dream home may be closer than you think.”
