If you’re considering a move this year, two critical factors in the housing market are likely top of mind: home prices and mortgage rates. Understanding what lies ahead can greatly influence your decision—whether to act now or wait.
Making an informed decision starts with the latest insights available. Here’s what experts are saying about both home prices and mortgage rates:
1. What’s Next for Home Prices?
For reliable forecasts on home prices, we look to sources like the Home Price Expectations Survey by Fannie Mae, which polls economists, real estate professionals, and market strategists. According to the latest survey, the consensus points to a continued rise in home prices through at least 2028. While annual appreciation rates may vary, overall, we expect a steady, sustainable increase (refer to the graph below).
What does this mean for you? Buying now means positioning yourself to benefit from future equity growth. Postponing your purchase could mean paying a higher price as home values continue to climb.
2. When Will Mortgage Rates Come Down?
Predicting mortgage rates remains a complex endeavor. Odeta Kushi, Deputy Chief Economist at First American, explains the dynamics: “Monthly fluctuations in inflation, labor market data, and global uncertainties all influence mortgage rate trends. While we anticipate a potential decrease later this year, economic indicators will drive these changes.”
As highlighted in CNET, mortgage rate forecasts are subject to constant revision based on economic shifts and global events. While rates might decrease in the future, the timing and extent of these changes remain uncertain.
Navigating Your Next Move
If you’re financially ready to purchase a home now, consulting with a trusted real estate advisor can provide clarity. Together, we can assess your options and align them with your goals, ensuring you’re well-informed about current market dynamics.
Bottom Line
Connect with us to stay updated on the latest insights into home prices and mortgage rate expectations. Armed with this knowledge, you can confidently decide on your next move in the Temecula housing market.