Tuesday, January 30, 2024 / by Va Marketing
If you're considering purchasing a home this year, chances are you're closely monitoring the housing market. You're gathering information from various sources like news outlets, social media, your real estate agent, and discussions with friends and family. The topics of home prices and mortgage rates likely dominate these conversations.
Here are the two primary questions you should be asking yourself as you navigate this decision, along with key insights to help you cut through the noise.
What's the Outlook for Home Prices?
While the rate of appreciation may not match that of recent years, the crucial takeaway is the consensus that prices will continue to ascend, not decline, over the next five years.
This upward trajectory in home prices, albeit at a more moderate pace, bodes well not only for the market but also for you as a prospective buyer. Buying now positions you to benefit from future value appreciation and accruing home equity. Conversely, delaying your purchase, based on these forecasts, could result in higher costs down the line.
What's the Outlook for Mortgage Rates?
“. . . 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.”
As noted by the National Association of Realtors (NAR):
“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 . . .”