If you’re looking to buy a home, the recent downward trend in mortgage rates is good news because it helps with affordability. But there’s another way this benefits you – it may inspire more homeowners to put their houses up for sale.
The mortgage rate lock-in effect
Over the past year, one factor that’s limited the options for your move is how few homes were on the market. That’s because many homeowners chose to delay their plans to sell once mortgage rates went up. An article from Freddie Mac explains:
“The lack of housing supply was partly driven by the rate lock-in effect. . . . With higher rates, the incentive for existing homeowners to list their property and move to a new house has greatly diminished, leaving
Even though home prices are rising nationally, some people still worry they might come down. A recent survey from Fannie Mae found that 24% of people think home prices will decline over the next 12 months. That means almost one out of every four people are dealing with that fear, and you might be, too. To help ease that concern, here's what experts forecast will happen with prices this year.
Experts project a modest increase Check out the latest home price forecasts from eight different sources (see graph below):
The blue bar on the left means, on average, experts think home prices will go up over 2% by the end of this year – not down. Prices aren't likely to depreciate in 2024 because inventory is still tight, and lower mortgage rates lead to
If one of the goals on your list is selling your house and making a move this year, you're likely juggling a mix of excitement about what's ahead and feeling a little sentimental about your current home. A great way to balance those emotions and ensure you're confident in your decision is to keep these three best practices in mind when you're ready to sell.
1. Price your home right The housing market shifted in 2023 as mortgage rates rose and home price appreciation stabilized again. As a seller, you still need to recognize how important it is to price your house appropriately based on where the market is today. Hannah Jones, economic research analyst for realtor.com, explains:
"Sellers need to become familiar with their local market and work
If you’re worried about what’s next for home prices, know the HPES shows experts are projecting they’ll continue to rise at least through 2028.
Based on that forecast, if you bought a $400,000 house this year, experts say it could gain over $72,000 in equity over the next five years.
If you're worried about falling home prices, don't be. Many experts forecast they'll keep rising for years to come. If you have questions, contact The Aaronson Group for expert guidance. Call 949-388-5194, email info@previewochomes.com
When it comes to what’s happening in the housing market, there’s a lot of confusion going around right now. You may hear one thing in conversation with your friends, see something different on the news, and read something on social media that contradicts both thoughts. And, if you’re thinking about making a move, that can leave you with many lingering questions. That’s where The Aaronson Group comes in.
Here are the top 3 questions people are asking about today’s housing market and the data to help answer them.
1. What’s next for mortgage rates?
Mortgage rates are higher than they’ve been in recent years. And, if you’re looking to buy a home, that impacts how much you can afford. Many buyers want to know what’s ahead for mortgage rates. The
Your equity grows as you pay down your home loan and prices increase. With home prices rising again, your equity is getting an extra boost.
Almost half of homeowners are equity-rich because they have at least 50% equity. If you’ve been in your home for a while, you might have also gained a considerable amount of equity.
Want to find out how much equity you have? Contact The Aaronson Group. Call 949-388-5194 Email: info@previewochomes.com
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