Housing Predictions for 2022
As the we welcome the new year, there are many changes already making their way. The stress of a mortgage and homeownership will still carry into the new year, but that is where JTS & Co. comes in to help you!
Mortgage advisors are expecting an increase in rates, but not a drastic one. At the end of 2021, rates stayed around below 3% for a 30-year fixed rate term. The average rate is expected to approach 4%, which is not a bad rate considering mortgage rates have been higher previously.
The Federal Reserve announced that starting in March of 2022 they will no longer be purchasing mortgage-backed securities and Treasury bonds whereas they had been spending $30 billion a month on bonds during the pandemic to support the economy. This plan is to combat the inflation that is occurring but has caused experts to start expecting higher rates. Read our blog post to learn more.
Major forecasters are expecting median home prices to increase, but not as drastically as the previous year. Potential buyers may have a harder time of finding their dream home as they may be priced out of the market. Buyers will be facing a competitive seller’s market this upcoming year. The inventory of affordable homes will stay low as median sales of homes is expected to rise.
However, many home buyers are beginning to look outside of their desired boundaries due to work flexibility. Rural areas typically have a lower cost per square foot which could make for good buying opportunities. Consider more non-traditional opportunities and consult your realtor on what may be a good fit for you.
Current homeowners may consider an upgrade to their current residence to improve their home equity to avoid being a buyer in the housing market. A cash-out refinance would cover the cost of the renovations to the home. Ask if refinancing your current mortgage is right for you.
While everybody would love to be able to accurately predict the future, these are just predictions based on previous facts and educated inferences. Consult your local team of trusted and licensed mortgage advisors at JTS & Co. to plan your next steps and receive personalized advice.