Driving the News: Home Prices Expected to Rise Despite Higher Interest Rates

Why It Matters

Home prices are a major indicator of the overall health of the economy. When home prices are rising, it means that people are confident about the future and are willing to invest in real estate. This can lead to increased economic activity and job growth.

Zoom In

The following factors are driving home prices higher:

• Demand for housing is still high. The population of the United States is growing, and more and more people are forming households. This is driving up demand for housing.
• Supply of homes for sale is limited. There are a number of factors contributing to this, including a shortage of construction workers, high material costs, and zoning restrictions.
• Interest rates are rising. This is making it more expensive to buy a home, but it is not expected to dampen demand significantly.

What to Do

If you're thinking about buying a home, it's important to be prepared for higher prices. However, there are a few things you can do to increase your chances of getting a good deal:

• Get pre-approved for a mortgage before you start shopping. This will give you an idea of how much you can afford to borrow and what your monthly payments will be.
• Shop around for the best interest rate. Don't just go with the first lender you talk to. Compare rates from multiple lenders to get the best deal.
• Be prepared to negotiate. Sellers may be more willing to negotiate on price in a high-interest-rate environment.
• Consider buying a less expensive home. If you're on a tight budget, you may want to consider buying a less expensive home. This will help to keep your monthly mortgage payments affordable.

Bottom Line

Home prices are expected to continue to rise in the coming years, even though interest rates are rising. However, there are a few things you can do to increase your chances of getting a good deal on a mortgage.