Increased mortgage rates – While mortgage rates have remained near historic lows for many months, National Association of Realtors economists expect the 30-year fixed mortgage rate to increase by the end of 2022 as the Federal Reserve increases interest rates to battle inflation.
Increased home prices – Home prices in 2021 increased by almost 20% from the year before. Experts predict that home prices will continue to rise in 2022, but only by abut 3-6%.
Limited inventory – Throughout 2021, inventory remained low and bidding wars were prevalent. During 2022, inventory is expected to increase slightly but will likely remain low enough to keep bidding wars in play.
For more information on 2022 housing market predictions, click here.
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