From rising home prices to fluctuating mortgage rates, the housing market has definitely kept people guessing. If you’ve been wondering whether now’s the right time to make a move, you’re not alone. The good news? You don’t have to figure it out on your own—that’s what the experts are here for.
Top housing experts are beginning to share their predictions for the rest of the year—and their insights might just give you some much-needed clarity and even a bit of optimism. Business Insider recently pulled together these forecasts, and here’s why that’s good news for you:
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”
Let’s take a closer look.
1. Mortgage Rates Should Come Down (Slightly)
While we’re not expecting a big drop, experts do see mortgage rates dipping slightly in the coming months as the economic picture gets a bit clearer. Based on what we know so far, here’s where they think rates could land by the end of the year (check out the graph below):
Even a small drop in rates is a step in the right direction. It might not seem like much, but it can make a real difference—lowering your future mortgage payment and giving your budget a little more wiggle room.
Keep in mind, things like inflation, job trends, and overall economic shifts will all play a role in where rates head next. So instead of trying to perfectly time the market, it’s better to stay flexible—and be ready for a few ups and downs along the way.
2. Inventory Will Continue To Grow
Inventory has come a long way this year—and a big reason for that is homeowners are getting tired of waiting things out. Many tried the “wait and see” approach with interest rates, but it hasn’t really worked in their favor. At some point, life happens, and people need to move regardless of what the market’s doing. That’s why we’re seeing more homes hit the market lately—and according to the experts, that trend should keep going. As Lance Lambert, Co-founder of ResiClub, puts it:
“The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher.”
If the experts are right about where rates are headed, that might be just the push some hesitant sellers need to jump back in—meaning you could have even more options when it’s time to make your move.
3. Home Prices Are Moderating
As more homes become available, we’re likely to see less pressure pushing home prices up. Experts still expect prices to grow, but not as quickly—thanks to the increase in inventory. On average, the latest forecasts from seven sources show prices rising about 2% this year (check out the graph below):
That means you might finally catch a bit of a break from those fast-rising home prices. And when you pair that with the forecast for slightly lower mortgage rates, it could add up to more buying power for you in the coming months.
Just remember, the housing market is very local, so things can look different depending on where you are. In some areas, prices might keep going up, while others could see a slight dip if there’s a big increase in inventory. It’s a good idea to connect with a local agent who can give you the inside scoop on what’s happening in your area.
Bottom Line
If you’re thinking about moving this year, the experts say things should start improving. Let’s chat so you can make the most of any market changes that play in your favor.