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2022 Housing market predictions



INTEREST RATES The Federal Reserve is expected to raise interest rates a few times in 2022.


MORTGAGE RATES Mortgage rates will drift higher as the Federal Reserve raises short-term interest rates, which are likely to hit 3.7% by the end of 2022 on a 30-year rate (after hovering at 3% for most of 2021.) - Lawrence Yun, chief economist for the National Association of Realtors


HOME SALES Home sales are expected to increase another 6.6% in 2022 -Danielle Hale, Realtor.com chief economist


HOME PRICES Median home prices are projected to grow 5.7% in 2022, according to the National Association of Realtors - or maybe Fannie Mae has it right when predicting a growth of 7.4%.


BUYERS OUTLOOK Buyers will likely be able to get more for their money in 2022. Asking prices decelerated in the second half of 2021...with prices near all-time highs and mortgage rates expected to rise, we expect this slowdown in prices to continue. -Danielle Hale, chief economist at Realtor.com


MILLENNIALS MOVE*

52% of [Millennials] say the importance of building equity has become more important recently. We expect to see a continued increase in home-buying interest and competition while mortgage rates remain low. -Matthew Vernon, retail and centralized lending executive for Bank of America *Stay tuned for what this means for sellers.


Bottom line, 2022 is still going to be a seller’s market, just not as frenetic as 2021.

Economic trends including tight supply, elevated demand and low mortgage rates will continue to give sellers the upper hand - but not as severe as in 2021.


Further questions? Give me a call, or text, or email - whatever's easiest! 267-804-0334 Nicole.McGann@Compass.com



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