I am very frequently asked what direction the real estate market and interest rates are headed. I always start out by saying, "I cannot predict the
future"...and that's 100% true. If I could I wouldn't be selling real estate.
I can, however, tell you what I think is going to happen. That just comes from 17 years of experience and a gut feeling. As a brokerage owner I spend a considerable amount of time researching and reading what the "experts" say. And no, they are not right all the time either.
There are so many factors that influence the real estate market, property values, and interest rates. What a change we have seen just over the past 9 months.
Fannie Mae predicts interest rates will be in the mid 4s next year. Many lenders are predicting the same (but it is likely they are just echoing Fannie's advice).
There is a silly expression in this business (especially used in the lending side) that says, "marry the house, date the rate". In other words, if you love the house, buy it now at the prevailing interest rates and refinance it later when rates are lower. And it does make sense if you find your dream house and can afford to buy it now. Housing prices may be higher once rates go down. And the dream house is gone.
Mortgage lenders are also getting creative. We have relationships with lenders that will discount refinancing costs and waive some of the fees when you can convert later to a lower rate.
Bottom line is that you should only do what you are comfortable doing. Want to chat about real estate? Give me a call, send me a text, or drop me an email. The coffee is on me.