Market trends that we’re starting to see emerge this spring.
Today I’ll talk about what experts are saying we should expect from the 2022 spring housing market.
Freddie Mac recently released an article regarding mortgage rates exceeding 4% for the first time since May 2019. In it, they say we can expect rates to continue to rise throughout the year. If you’re looking to buy or sell this year, realize that your monthly payment will increase more as rates go up.
Housing inventory should also increase this year. The National Association of Realtors just announced that the months supply of inventory increased for the first time in eight months. I don’t have a crystal ball, but I hope that this will happen in our local market as well.
Home prices are also slated to rise but at a slower pace. Prices are always determined by supply and demand. Demand remains very strong, and it will take quite some time before supply catches up. Many people think that mortgage rates increasing by 1% means that home prices have to fall. However, Freddie Mac studied this scenario, and they found that mortgage rates have increased by at least 1% six times in the past 30 years, and in each case, home values actually increased.
If you have any questions about the current market, reach out to me by phone or email. I’d love to answer any questions you might have.
