Wondering what the housing market will do this summer?
Interest Rates
All signs point to interest rates growing further in 2022, with the Fed planning hikes after each of its remaining 2022 meetings. If that is stopping you from taking action, keep this in mind - most homeowners do not keep the same loan for the entire 30 year maturity period. Think your interest rate is high because last year they were in the 2's? Refinance if/when rates decrease. Or maybe it's time to move again! The average homeowner moves every 8-13 years. Here is a link to see the history of 30-yr mortgage rates dating back to 1971
Inventory
There are some predictions that inventory will peak in late summer or early fall. We are still adjusting back to our traditional market conditions and seeing slim inventory for the level of buyers out there. Simple supply and demand is still a very real scenario, and while the buying pool may normalize and shrink due to increasing interest rates, it is predicted that housing prices will continue to grow - just at a more normalized (think pre-pandemic) rate.
If you are waiting for a real estate market crash - you may be waiting a while.
My Advice?
Don’t give up now, get paperwork ready, and stay positive. Ask your lender what your monthly payment would look like under a few difference scenarios and price-points so you can best prepare. This is still a great time to be purchasing and selling real estate. Your next home is out there!
Sources: The Mortgage Reports, Freddie Mac
