Rising interest rates have begun to slow an 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 priced out of the market and others wondering if now is the time to buy or if they should wait for rates to go down. But this rise in borrowing cost shows no signs of letting up soon.
“While even two months ago rates above 7% may have seemed unthinkable, at the current pace, we can expect rates to surpass that level in the next three months.”
So, is now the right time to buy a home? Anyone thinking about buying a home today should ask themselves two questions:
1. 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. If you look at what experts are projecting for home prices in 2023, they’re forecasting home price appreciation around 2%. While it’s true some are calling for depreciation, most are calling for appreciation in home values over the next year, but at a low rat4e.
The second spot 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):
2. Where Do I Think Interest Rates Are Heading?
Like 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.
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 or stay put. It does make sense for many homeowners to stay put, but there are always circumstances which require a move. Rents are also increasing, and rent is 100% interest. There are options, and I would be glad to have a conversation to discuss your specific situation to see if making a move is right for you. Reach out to me Sabrina Shaw, here at Homes by Sabrina brokered by eXp Realty, as I am always here to guide and serve you.
We serve Tulsa County and Creek County, but specialize South of 121st Street in Bixby OK 74008, Jenks OK 74037, Mounds OK 74047, Kiefer OK 74041, Glenpool OK 74033, and Sapulpa OK 74066.
We are always here to guide and serve you for all your home buying and selling needs. Feel free to reach out to me Sabrina Shaw, here at Homes by Sabrina, brokered by eXp Realty to discuss your specific situation.
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