Housing Market Trends to Watch this Fall
October 28, 2022
Where the Housing Market is Going
Amid housing market prices and mortgages that continue to rise, a number of economic and real estate experts often weigh in with their most recent take on the current housing trends. Realtor.com recently spoke with Nadia Evangelou, the senior economist and director of forecasting at the National Association of Realtors (NAR) about what to watch for in 2022.
Just what advice did Ms. Evangelou have to share?
First, the outlook for mortgage rates could rise even further.
Mortgage rates for 30-year fixed loans went up over the summer, almost doubling to nearly 6% in June compared to just over 3%. While they’re not expected to sustain that same incredibly sharp incline, they’re also not expected to drop again in the near term.
Some buyers should consider an ARM.
For certain buyers in today’s market, an adjustable-rate mortgage might make more sense than a fixed-rate mortgage, especially if they’re thinking about selling or refinancing sometime within the next five years. This could end up saving hundreds of dollars per month, essentially putting cash back into your pocket.
There are some signs the market is cooling.
With housing prices and mortgage rates still going up, affordability has been impacted, which has created somewhat of a vicious cycle. This in turn means more people are renting, and rent is rising sharply due to lower inventory. One cause for that is institutional buyers who are edging out lower-income and first-time buyers.
Home prices will continue to rise but at a slower pace.
Because of the historically lower number of houses for sale, prices aren’t likely to drop in 2022. (This is good news if you’re not planning on moving soon.) However, if you’re hoping to buy a property soon, keep in mind that it could take significantly more savvy negotiating to close the deal.
Whenever you’re thinking about a move or you’re ready to compare mover quotes, at Beltmann Moving and Storage, we can’t wait for you to find your next place — or even your forever home. Give us a call today and we can help talk through your next steps.
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