With home prices on the rise and mortgage rates fluctuating, many are questioning what will happen next in the housing market and whether it's the right time to make a move. If you're looking for clear answers, turn to the experts.

Housing experts are beginning to share their predictions for the remainder of the year. This information can provide you with clarity and even some optimistic outlooks that you might not have anticipated. Business Insider highlights these forecasts and explains why they are positive 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.”
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— Business Insider

Let’s take a closer look at this.

1. Mortgage Rates Should Come Down (Slightly)

There isn’t an expectation for a significant drop, but experts are predicting a slight decrease in rates in the coming months as the economic outlook stabilizes. Given what we know at this moment, here’s a summary of where they anticipate rates will be by the end of the year (see graph below):

Even this small dip is a positive development. A minor decline can still lower your future mortgage payment, giving you a little extra flexibility in your budget.

Keep in mind that factors like inflation, employment trends, and changes in the economy will influence interest rates moving forward. It’s best not to attempt to time the market, and be prepared for some fluctuations as you navigate this journey.

2. Inventory Will Continue To Grow

Inventory has improved significantly this year. A big part of this market growth comes from homeowners getting tired of waiting on the sidelines. They’ve tried taking a "wait and see" approach with interest rates, and it hasn't really worked out for them. At some point, you have to make a move, regardless of how the market is doing. This is one of the reasons we’re seeing more homes being listed recently, and experts believe this trend will continue. As Lance Lambert, Co-founder of ResiClub, mentioned:

““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.”
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— Lance Lambert, Co-founder of ResiClub

If the rate forecasts turn out as experts expect, we might see more sellers jumping back into the market. This could give you even more options for your upcoming move.

3. Home Prices Are Moderating

As more homes become available, the upward pressure on home prices is easing. Experts still predict some price growth, but it's slowing down as inventory increases. On average, forecasts suggest home prices will increase by about 2% this year.

You might finally experience some relief from the steep rise in home prices. With expectations for more stable price growth along with predictions of slightly lower mortgage rates, you could have increased buying power in the coming months.

Just remember, the housing market is very local, so conditions can differ quite a bit from one area to another. In some places, prices might be on the rise, while in others, they could actually drop if there's a lot of inventory available. It’s a good idea to rely on a local agent who can give you a clearer picture of what’s going on in your specific area.

Bottom Line

If you’re planning to move this year, the experts suggest that positive changes are on the horizon. Let’s connect to discuss how you can benefit from any shifts in the market that could work in your favor.