a current look at the 2022 housing market

A Current Look at the 2022 Housing Market

Even with a possible recession on the horizon, the housing market conditions are not as scary as they may seem. A recession does not mean a housing crash even though the media is regularly talking about escalating home prices, rising mortgage rates and past housing bubbles. What we’re really seeing is movement towards stabilization. Let us share what we are already viewing from the trenches of home financing to bring some reassurance.

Price growth rates are slowing. After a record run of frenetically rising home prices, gains are slowing down. According to the latest forecasts, prices should continue to appreciate this year, although at a more moderate rate than they did in 2021.

Mortgage rates remain in the “low” range. After a couple of years with extraordinarily low mortgage rates, 2022 has seen some increases, yet rates are still well below long-term averages.

While the Federal Reserve Board continues raising policy rates to cool inflation, mortgage rates have largely reflected the changes already. Even with the increases, home price gains and other advantages can make owning a better deal than renting.

What does all of this mean for you?

A lot of existing homeowners are very comfortable right now. They’ve locked in a low interest rate and are enjoying fixed housing costs. Because of today’s strict underwriting guidelines and due diligence, they’re confident they have the income and resources to afford their homes.

For most, their homes have gained significant value. This may provide equity to access for emergencies, home improvements or other expenditures. If you’re in this position, we can help you explore your options.

For those still looking to buy, market forces are tilting toward more housing supply (which means less competition), price moderation, and rate stabilization. This combination invites buyers who previously shied away from the frantic market back in the game.

If you or someone you know are looking to get in the game, don’t delay. We can assist you with reviewing your financial situation and getting a fully underwritten SureToCloseSM Pre-Approval with earnest money guarantee. Be sure to contact us today!

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