Are The Top 3 Housing Market Questions on Your Mind?

 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 answer to that question is: no one can say for sure, but here’s what we know based on historical trends.
There’s a long-standing relationship between mortgage rates and inflation. When inflation is high, mortgage rates tend to follow suit. Over the past year, inflation was up, so mortgage rates were as well. But inflation is easing now. This is why the Federal Reserve has recently paused their federal funds rate hikes, which means many experts believe mortgage rates will begin to come down.
And in some ways, we’ve started to see hints of slightly lower mortgage rates in recent weeks. But it’s undoubtedly been volatile and will likely continue to be that way going into next year. Some ongoing variation is to be expected, but the anticipation is that in 2024, we’ll see a downward trend. As Aziz Sunderji, strategist at Home Economics, says:
“The bottom line is that interest rates are likely to be lower-perhaps even lower than many optimists think – in the weeks and months to come.”

2. Where are home prices headed?

While there’s been a lot of concern prices would come crashing down this year, data shows that didn’t happen. Home prices are rising in most of the nation. Experts say that trend will continue at a slower pace that’s much more normal for the housing market – and that’s a good thing.
To help show just how confident experts are in this continued appreciation, look at the home price expectation survey from Pulsenomics. It surveys a national panel of over 100 economists, real estate experts, and investment and market strategists. As the graph below shows, the consensus is that prices will keep climbing next year and in the future.

3. Is a recession around the corner?

While recession talk has been an ongoing topic over the past few years, there’s good news.
The Wall Street Journal (WSJ) polls experts on this topic regularly. And last year, most of them thought a recession would have happened by now. But as experts look at all the leading indicators today, they’re changing their minds and saying a recession is getting less and less likely.  No hint of a recession is big news for the housing market.

Bottom Line

The big takeaway? The data shows there isn’t cause for concern – there are more signs of hope. Reach out to The Aaronson Group to discuss the housing market questions on your mind heading into the new year.  Call 949-388-5194 or Email: info@previewochomes.com

 

 

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