Want To Know The 2 Questions You Should Be Asking Yourself If You're A Buyer In Today's Market?

It's a fact rising interest rates have begun to slow the overheated housing market as monthly mortgage payments have risen dramatically since the beginning of the year. This is leaving some people who want to purchase a home either priced out of the market or wondering if now is the time to buy one. The truth is, there are no signs of this rise in borrowing cost letting up soon. But it's not all doom and gloom. We have to restrategize. 

Another factor right now is economic uncertainty and the volatility of the financial markets. These are causing mortgage rates to rise. George Ratiu, Senior Economist and Manager of Economic Research at realtor.com, says this:

"While rates above 7% may have seemed unthinkable two months ago, at the current pace, we can expect rates to surpass that level in the next three months."

Is it the right time to buy a home? If you're on the sidelines, you need to ask yourself the following…

Where Do I Think Home Prices Are Heading? There are two places to turn to answer this question. First is the consensus of what experts are saying. Looking at what experts are projecting for home prices in 2023, they forecast an appreciation of around 2%. While it's true some are calling for depreciation, most are calling for appreciation in home values over the next year.

The second place to turn to for information is the Home Price Expectation Survey from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists. According to the latest release, the experts surveyed are also calling for home price appreciation for the next several years (see graph below): 

1. Where Do I Think Interest Rates Are Heading?

As mentioned above, Ratiu sees mortgage rates rising over the next several months. Another expert agrees. Mark Fleming, Chief Economist at First American, says:

"While mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us." 

The instability in the world and higher inflation are driving this volatile market, resulting in higher borrowing rates for those looking to buy homes.

Bottom Line

If you're thinking about buying a home, asking yourself about home prices and mortgage rates will help you make a powerful and confident decision. Experts see both prices and rates rising in the future. The alternative is to rent, but rents are also increasing. That may mean buying a home makes more sense than renting. Most important, don't just listen to the scare tactics of the news media. Instead, turn to EXPERTS for your information. Knowledge is KEY!