What should you expect in 2022?
After another chaotic year, there's one question on the minds of many buyers and sellers: What should I expect from the real estate market in 2022?
While inventory will remain tight and prices will continue to rise, the price growth should begin to slow.
One of the biggest changes buyers can expect to see is in mortgage rates. The past year kicked off with record- low interest rates, but with rising inflation and continued pandemic recovery, the Federal Reserve is making plans to increase rates in 2022. Experts expect that the 30-year fixed mortgage rate could increase to 3.7% by the end of next year.
What does that mean for you? The initial rate hike often causes a panic where buyers think they "need to get in." If you are planning to buy soon, you'll want to keep the changing interest rates in mind, but don't put pressure on yourself to buy before you're ready. Although increased mortgage rates may put a dent in the amount you're able to spend on a home, overall these rates are still expected to be lower than the pre-pandemic average of around 4%.
Buying a home is one of the biggest financial decisions you can make, so it's important to approach the process with a clear head rather than rushing to buy a home that may not fit your needs. An experienced Realtor can help you weigh these big decisions. If you're ready to make a plan to buy in 2022, give our expert team at Harnish Properties a call.
201 B Avenue, Suite 101
Downtown Lake Oswego