Wednesday, August 28, 2024 / by Dick Keenan
As we look ahead to 2025, it’s essential to understand what experts are predicting for the housing market. Whether you’re considering buying or selling a home next year, having a clear understanding of the projected trends can help you make well-informed decisions about your real estate plans.
Here’s a closer look at the latest forecasts for mortgage rates, home sales, and home prices in 2025.
Mortgage Rates Expected To Gradually Decline
Mortgage rates are a key factor in the housing market, influencing affordability for buyers and overall market activity. According to forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), and Wells Fargo, mortgage rates are anticipated to decrease slightly throughout 2025.
This expected decline in mortgage rates is largely attributed to the easing of inflation and a modest increase in unemployment rates—indicators of a strong but slowing economy. Many experts b. ...
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Wednesday, August 28, 2024 / by Dick Keenan
In the past few years, many people have found it challenging to buy a home due to affordability issues. While it's still tough out there, there are signs that things might be getting a bit easier, with potential for further improvement as the year progresses. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), puts it this way:
“Housing affordability is improving ever so modestly, but it is moving in the right direction.”
Let's take a closer look at the three key factors that influence home affordability: mortgage rates, home prices, and wages.
1. Mortgage Rates
Mortgage rates have been quite volatile this year, fluctuating between the mid-6% to low 7% range. However, there's some positive news. Data from Freddie Mac shows that since May, rates have generally been on a downward trend.
This improvement in mortgage rates is partly due to recent economic, employment, and inflation data. While we can expect some ongoing fluctuations, expe. ...
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Wednesday, August 7, 2024 / by Dick Keenan
Mortgage rates have been a major topic in the housing market due to their significant impact on affordability. If you're looking to buy a home, you've likely been waiting for rates to drop. Good news: the past few weeks have shown a promising decline in rates.
Mortgage Rates Trend Down in Recent Weeks
There's exciting news about mortgage rates. Following recent reports on the economy, inflation, unemployment rates, and comments from the Federal Reserve, mortgage rates have started to decrease. According to Freddie Mac, rates are now at their lowest level since February. Here's a visual representation of this downward trend:
You might be tempted to wait and see if rates will drop even further. However, it's important to keep things in perspective. The record-low rates from the pandemic are a thing of the past. If you're hoping for a 3% mortgage rate again, experts agree that’s unlikely. As Greg McBride, Chief Financial Analyst at Bankrate, explains:
"The hopes for lo. ...
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Wednesday, August 7, 2024 / by Dick Keenan
The current news about home prices can be confusing, making it hard to understand what's really happening. Some headlines suggest home prices are due for a correction, but what does that actually mean? Let's break it down.
What Does a Correction Mean?
Danielle Hale, Chief Economist at Realtor.com, explains:
"In stock market terms, a correction generally refers to a 10 to 20% drop in prices. . . We don't have the same established definitions in the housing market."
In real estate, a correction doesn't mean a dramatic drop in prices. Instead, it indicates that prices, which have been rising rapidly in recent years, are now stabilizing and growing at a more moderate pace. While prices can vary significantly by local market, a steep national decline isn't what's happening.
The Real Estate Market Is Normalizing
From 2020 to 2022, home prices surged due to high demand, low interest rates, and a shortage of homes for sale. However, such rapid growth couldn't continue indefin. ...
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real estate, keller williams, keenan carter group, central coast, home ownership, housing affordability, affordability, home loan, home pricing, home value
Thursday, June 27, 2024 / by Dick Keenan
Should you buy a home now or wait? This is a common question, and while the right timing depends on personal factors, there’s an important aspect to consider: if you can afford to buy at today’s rates and prices, focusing on time in the market is often more beneficial than trying to time the market.
The Pitfalls of Timing the Market
Attempting to time the market can be risky because conditions change frequently. For example, many forecasts predicted mortgage rates would drop this year. While experts still believe this will happen, various economic factors have delayed the decrease. U.S. News explains:
“Those who put off buying a home during the past few years as they were holding out for lower mortgage rates have been left out of the market . . . mortgage rates have stayed higher for longer than previously expected, keeping monthly housing payments elevated. In other words, affordability didn't improve for those who chose to wait.”
This illustrates w. ...
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