Home prices appreciated 5.8 percent in August 2018, the first time in 12 months that gains were less than six percent, according to the Case-Shiller index.
This gives homebuyers breathing room as weakening home price growth helps ease competition on the market, and time to consider whether or not to buy before interest rates rise higher. Though winter is typically a slow time for the market, it might be a great time for buyers with greater supply and relatively lower prices and rates than what is to come, Zillow reports.
For some buyers, the coming months could represent a sweet spot – a time of slower price growth and relatively easier home shopping before mortgage rates climb even higher. Eventually, rising rates will gobble up the advantage of slowing price growth and substantially reduce buyers’ budgets. Already, mortgage payments are outpacing home value growth.
