Everyone dreams about owning a home of their own. But, unfortunately, prices of homes went up in the last year. However, mortgage rates decreased substantially, which led to an increase in the number of people who bought homes in 2021. This leads us to the question: what will happen to the housing market in 2022?
If you’re considering buying a home in the next year, you’ll be happy to know that right now, the outlook is good. Many forecasts are suggesting that 2022 will be a good year for new homebuyers.
Housing Market Predictions for 2022
2021 brought on many changes in the housing market. Will these trends continue into the next year? Let’s explore some of the current forecasts for home financing in 2022.
Freddie Mac has released some very detailed research regarding home prices and mortgage rates. Essentially, even though home prices are on the rise, the housing market will stay strong. This is because mortgage rates are expected to remain relatively low.
In July 2021, the average rate for a 30-year fixed mortgage was about 2.9%. And though rates will likely increase to 3.4% by the end of 2021, they won’t go over 3.8% by 2022’s fourth quarter.
Predictions say that mortgage and interest rates are not the only thing increasing next year. In addition, it looks like demand for housing will also increase.
Real estate and mortgage experts say that most millennials have reached the proper age of owning a house. Therefore, they are unwilling to wait to buy a home. Also, mortgage rates are currently lower than they have been in the past, making homeownership look even more desirable. Therefore, homes are in high demand.
Home Prices Are Coming to a Standstill
Home price growth rates are also expected to slow down in 2022.
While home prices are slightly higher than they have been in the past few years, that doesn’t have to stop you. Mortgage rates are still favorable, making now a good time to buy. We recommend working with a real estate agent who can help you negotiate with sellers to get the best price.
It looks like home inventory will improve a little in 2022 but not by much. Many real estate industry experts are sure that there will be more homes for sale this year. However, this number will still not increase as much as house demand. The COVID-19 pandemic has severely disrupted the supply chain, and experts think it will take at least two years for things to shift back to normal.
Home financing predictions for 2022 show that while home prices may stay high due to low supply, mortgage rates right now are quite low. Thus, if buyers are thinking about purchasing a new home sometime soon, they should act fast!
Explore Home Financing Options
Are you considering buying a house in 2022? Call Mortgage Solutions Financial to begin exploring your home financing options.