Buying a Home - Magazine - Page 4
Expected Rate of Home Price Appreciation Through 2025
Based on a survey of 100 economists, investment strategists, and housing market analysts
8.66%
5.12%
2021
2022
3.7%
3.56%
3.33%
2023
2024
2025
Home Price Expectation Survey 2021, Q2
3. Mortgage Rates Are Still Low
4. Home Prices Are Appreciating
Last year, we saw the lowest mortgage
interest rates in recorded history as they fell
below 3% for the first time ever. This season,
they’re still incredibly low compared to the
historic norm. According to the latest
quarterly forecast from Freddie Mac:
Investopedia defines appreciation like this:
“Appreciation, in general terms,
is an increase in the value of an
asset over time.”
Over the past year, we’ve seen home
prices rise across the country. And according
to expert forecasts, that appreciation will
continue through 2025.
“. . . while we forecast rates to
increase gradually later in the year, we
don't expect to see a rapid increase.
At the end of the year, we forecast 30year rates will be around 3.4%, rising
to 3.8% by the fourth quarter of 2022.”
This should help you feel confident that
buying a home this year is a strong
long-term investment.
Today’s low mortgage rates help boost your
purchasing power, but it’s unlikely they’ll last
much longer. Buying sooner rather than later
is the best way to get more house for
your money.
If you’re worried about what that means for
affordability today, remember that current
mortgage rates help boost your purchasing
power and keep your monthly payments
more affordable.
Bottom Line
Let’s connect if you’re ready to buy so we can get your journey to homeownership
started and you can capitalize on today's unique housing market opportunities.
4