Hello 2022! 2021 was certainly a year for the record books in so many ways. On the residential real estate front, rates for a 30-year fixed mortgage set records at 2.65%. Now the question on everyone’s mind is “Will buying a house in 2022 be easier than last year?”. Experts believe mortgage interest rates will continue to increase as we get further into 2022. As a reference point, last year the average 30-year fixed mortgage rate rose around 0.5%.
There are differing opinions on how much and exactly when rates will rise in 2022. Rates may see an increase up to 3.5% by the end of 2022, according to Freddie Mac. However, the National Association of REALTORS® is anticipating that this number will be closer to 2.7%. Regardless of how increases play out, they will remain lower than other increases we have seen in previous years. This is welcome news for home buyers who have been closely watching home prices and mortgage interest rates and want to purchase a home in 2022.
Other things to consider that may affect mortgage rates include rising inflation and covid variants. Omicron and the fear of other variants could potentially pull rates down, just as it did at the start of the pandemic. Economic unpredictability could possibly prompt the Federal Reserve to again intervene to keep rates low, although there is no indication that this will happen. We have all felt the pain points of inflation, which hit a 39-year high this past November. Experts attribute this rise to the ongoing pandemic, labor shortages, and the massive supply chain disruption. Some good news – economists are optimistic that prices will drop once the supply chains issues are rectified, which is anticipated to happen in mid-2022.
In 2021, the housing demand vs. the supply was unprecedented and although a slight shift may occur for buyers, 2022 will more than likely still be a seller’s market. As it’s unlikely mortgage rates will go down, there is no time like the present to act if buying or selling your home is something that has been on your mind. Our experts at Bash & Co. Sotheby’s International Realty bring with them the market knowledge necessary to guide you through the process with ease. We are ready to help you unlock home in 2022!
Bash & Co. Sotheby’s International Realty is an innovative full-service residential real estate brokerage that leverages the latest technology to serve clients in emerging, established, and luxury neighborhoods across the Kansas City area. Follow them on Instagram here and on Facebook here.