What’s Next for Home Prices and Mortgage Rates in Philadelphia and the Main Line?

What’s Next for Home Prices and Mortgage Rates?

What’s Next for Home Prices and Mortgage Rates in Philadelphia and the Main Line?

If you’re thinking of making a move in the Philadelphia or Main Line areas this year, two housing market factors are probably on your mind: home prices and mortgage rates. You’re likely wondering what’s going to happen next and whether it's better to move now or wait it out.

The best approach is to make a well-informed decision based on the latest information. Here’s what experts are saying about both prices and rates in the Philadelphia and Main Line areas.

1. What’s Next for Home Prices in Philadelphia and the Main Line?

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A reliable source for home price forecasts is the Home Price Expectations Survey from Fannie Mae, which surveys over one hundred economists, real estate experts, and investment and market strategists.

According to the most recent release, experts project that home prices will continue to rise at least through 2028. While the percentage of appreciation varies year-to-year, this survey indicates that prices will rise (not fall) for at least the next five years, albeit at a more moderate pace.

What Does This Mean for Your Move?

If you buy a home now in Philadelphia or the Main Line, your property is likely to grow in value, helping you gain equity in the years ahead. Conversely, if you wait and prices continue to climb, the cost of purchasing a home will likely be higher later on.

2. When Will Mortgage Rates Come Down?

This is the million-dollar question in the industry. There’s no easy answer due to the numerous factors contributing to the volatile mortgage rate environment. Odeta Kushi, Deputy Chief Economist at First American, explains:

“Every month brings a new set of inflation and labor data that can influence the direction of mortgage rates. Ongoing inflation deceleration, a slowing economy, and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates.”

The future of mortgage rates depends on the trajectory of these factors. Experts are optimistic that rates will come down later this year, but acknowledge that changing economic indicators will continue to have an impact. As a CNET article states:

“Though mortgage rates could still go down later in the year, housing market predictions change regularly in response to economic data, geopolitical events and more.”

Bottom Line

If you’re ready, willing, and able to afford a home right now, partner with a trusted real estate advisor familiar with the Philadelphia and Main Line markets to weigh your options and decide what’s right for you.

Let’s connect to ensure you have the latest information available on home prices and mortgage rate expectations in the Philadelphia and Main Line areas. Together, we’ll review expert insights so you can make an informed decision about your move.

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