What's Happening in the Housing Market?

With so much recent change in the housing market, you probably have questions about what it all means for your home buying plans this spring. Here are three things that are likely top of mind for you.

1. What's Going on with Mortgage Rates?

Last year, mortgage rates more than doubled within the calendar year. That’s never happened before, and the rapid rise caused many buyers to put their plans on hold. Today, rates are still quite volatile. With experts projecting rates will stabilize this year, that could be great news for you if you’re ready to buy a home. Any drop in interest rates helps boost your purchasing power by bringing your expected monthly mortgage payment down. 

But you shouldn’t expect rates to drop all the way down to the record lows we saw in 2021. Experts agree that isn’t a range buyers should expect. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.” 

It’s important to have a realistic vision for what you can expect this spring. Though we’re not going back to 3% mortgage rates, you may be surprised by the impact even a mild drop in rates has on your budget.

2. What's Happening with Home Prices?

Headlines about home prices can be confusing. While home price appreciation has cooled, where home prices will go from here will vary based on supply and demand in our local market. 

That may be why some experts say prices will decline slightly and others say they’ll continue to climb, just more moderately than they did in the frenzy of the pandemic. The important thing is, overall, experts say price appreciation will be relatively neutral or flat this year.

3. Should I Buy a Home Today?

Even with higher mortgage rates and today’s home prices, it can still make sense to buy a home today. That’s because buying a home is so much more than just a financial decision. It’s a lifestyle choice as well. As Freddie Mac, says: 

"Deciding whether to rent or buy depends on your financial situation, future plans and lifestyle. Both options have benefits that you need to carefully consider before making your decision.” 

If your needs have changed or if you are looking for a space that’s truly your own, there are still many compelling reasons to buy a home today. The sense of accomplishment, the wealth building opportunity, and the chance to stabilize your monthly payments can make it all worthwhile.

Bottom Line

Don’t let market uncertainty delay your goals. 

Let’s connect so you have an expert on your side to answer all your housing market questions. Together, we’ll review your goals and what’s happening in our market so you have the information you need to make a powerful and confident decision.