"Overall, survey participants believe we'll see the housing market and broader economy normalize next year," Yun said. "Though forecasted to rise 4%, inflation will decelerate after hefty gains in 2021, while home price increases are also expected to ease with an annual appreciation of less than 6%. Slowing price growth will partly be the consequence of interest rate hikes by the Federal Reserve."
The NAR expects 30-year fixed mortgage rates to end 2022 at 3.7%, up from a recent 3.2%, while a consensus estimate collected by NAR forecasts a 5.7% rise in home prices in 2022. The sales price of the median existing home was $353,900 in November. A $300,000 30-year fixed rate mortgage at 3.7% would cost about $1,381/month, about $84 more per month ($1,297/month) than at 3.2%. A $1 million mortgage at the higher rate will cost about $278 more per month.....that sounds manageable when many are experiencing rising wages and asset valuations.
If you are thinking of buying or selling a home in 2022, let's have a conversation.