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House market interest rates

There’s a phrase circulating around social media lately that says this:  “Explain it to me like I was five.” And that’s what talking about the real estate market and rising interest rates and trends and forecasts feels like for most people.  

While a portion of real estate decisions are emotional–after all, a house is the place we call home–it’s also one of the most important financial decisions we may make in our lives.   Because of that, there is so much at play.


We might be able to spend too much on dinner one night and recover from it, but paying too much for a house is crippling. Working with a REALTOR® like the Yosha-Snyder Group is a good way to help make sure you don’t buy too much house. What does that even mean? Buying too much house means that you’ve stepped into territory where you simply may not be able to afford your home long term.  While living in a home is emotional, paying for it is a monetary investment.  Covering the mortgage and insurance and taxes and expenses are all part of the affordability equation.  Be realistic about what you can afford on a monthly basis.

Real Estate Market

Do your best to be aware of the real estate market. Look at where you live right now. What do you like? What do you want to change?  How do you see yourself living differently?  These are all factors that might help determine what part of the real estate market will drive your decision. Do you want an existing home?  New construction?  The term “real estate market” is the network of people wanting to buy or sell real estate. Know what options are best for your future, and a trusted REALTOR® like the Yosha-Snyder Group is poised to help determine all of the variables.

Interest Rates

Once you’ve determined how much house you can afford to buy and what type of home you are interested in, interest rates may well affect the final decision.  Interest rates fluctuate with the economy and are determined by a formula that includes these variables: the Federal Reserve, bond market, Secured Overnight Finance Rate, Constant Maturity Treasury and the health of the economy and inflation.  None of this is in the buyer’s control–except for this: being aware of interest rates will play into choosing the right time for you to buy a home–and the right type of mortgage to secure.

Greg McBride, Chief Financial Analyst, Bankrate – March 2023

Interest Rate Trends

Multiple forecasts indicate that interest rates should decrease over the course of 2023 by approximately 1%–moving from an average of 6.5% to 5.5%.  The good news is that the Indiana housing market tends to outpace the national trend, making Indiana a good place to buy a home. We have the reputation of being one of the best long-term real estate investments over the past ten years.  The Yosha-Snyder Group is the Hoosier expert at helping you interpret the best time to buy a home.

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