Recent weeks have brought a jobs report, an inflation update, Fed meetings, and a presidential election, stirring volatility in stock markets and mortgage rates. As a local real estate consultant, I often get asked about the market. Here's a brief look at the top questions:
Will Interest Rates Drop? Forecasts suggest mortgage rates will decline in 2025, though the timing and extent remain uncertain. Recent rate hikes reflect inflation concerns and bond market activity, but the Fed is mindful of controlling inflation. Expect gradual relief next year.
Will Home Prices Fall? Limited inventory will keep upward pressure on prices nationwide, with a projected 2.5% price increase in 2025. Builders' underproduction over the past decade continues to constrain supply. While some cities may see exceptions, most markets will experience healthy price appreciation.
Will Affordability Improve? Affordability challenges persist, especially for first-time buyers facing high prices, rates, and stagnant wages. Existing homeowners hesitate to sell, holding low rates and equity. However, falling rates could encourage movement. First-time buyers should prepare now by exploring financing options and local programs.
The outlook for 2025 is optimistic. If you have specific questions about your neighborhood or situation, call me for tailored advice to help you make the best decisions for your family.
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