Should You Buy a Home in 2024?

Buying a home in 2023 crossed the minds of many people, and yet a staggering number ultimately deferred their plans for various reasons including increasing rates, job security, low inventory, etc. If you find yourself considering a home purchase in 2024, it’s probable that you are scrutinizing the housing market more closely than ever, and rightfully so.

Your sources of information likely ranges from the news and social media to insights from our team, as well as discussions with friends and family. Have you been hearing a ton of changing information about home prices and mortgage rates? We’d bet so!

To streamline your decision-making process, consider these questions:

1. Where Are Home Prices Are Headed?

The Home Price Expectations Survey from Fannie Mae – a survey of over one hundred economists, real estate experts, and investment and market strategists is a reliable source of information – says in their most recent release that home prices are projected to continue rising at least through 2028 (see the graph below):

Homes are not appreciating as quickly as they have in recent years but we can still expect prices to continue to rise, not fall, for at least the next 5 years. 

By buying sooner versus later, your home will likely grow in value, and you should continue to gain home equity in the years ahead. If you wait until next year, or even later this year, there is a good possibility you’ll pay more for the same home.

2. Where Are Mortgage Rates Headed?

Mortgage rates grew to 8+% in 2023 in response to economic uncertainty and inflation. 

When inflation cools, mortgage rates typically fall in response, and they already have in recent weeks! The Federal Reserve has signaled they are pausing increases and may cut rates more.

No one can say with certainty what will happen with mortgage rates this year, but the recent decline and the latest decision from the Federal Reserve to stop their rate increases, signals we may be seeing some light at the end of this tunnel! Affordability will improve as mortgage rates decline. 

 

 

Bottom Line

If you’re thinking about buying a home, you need to know what’s expected with home prices and mortgage rates. While no one has a crystal ball predicting where they’ll go, making sure you have the latest information is important to us as it allows you to make an informed decision about your choice to buy. 

Connect with us below to stay up to date on what’s happening and figure out what your best path forward looks like.