The Expert Podcast

So where will housing go in 2024, 2025, and beyond? Everybody wants to know. It's going to affect your rent, your mortgage, and your purchase price. Well, according to data, both housing prices and mortgage rates are going up—nowhere but up. According to Fortune, Millennials, the demographic group, are going to influence home prices sky-high for years to come. The article provides charts that back this up, which you can see in the link in the comments below. So, housing prices will remain sky-high for years to come—that's the takeaway from this article.

What about mortgage rates? Mortgages will become ultimately more expensive, partially because of interest rates, and we'll see that in a minute. But also, because of the way that mortgages are now being underwritten and approved. There's a change in the FHA underwriting process that will result in millions of Americans becoming ineligible for a mortgage due to credit ratings and the way they're tiered into the mortgage approval process.

In addition to that, interest rates—even though they're paused and probably not going to go up between now and the end of the year, maybe early next year—some rates actually dropped a quarter point. However, they will go up again. Are more interest rate hikes needed? What can we expect from the next Fed meeting? They'll leave the benchmark rate unchanged for now, but the risk tolerance in the marketplace will probably push it back up again in Quarter Two of 2024 and beyond.

That's what the current data indicators show for housing. I know you have an opinion about this. Let us know in the comments below what you think about interest rates and housing prices going forward—not what you want to happen, but what you think will really happen.