New Research Shares Projections for Housing Market in 2022May 19, 2022
The housing market in the United States is once again in hot waters. Following the announcement of the Federal Reserve about inflating the interest rates, the mortgage rates for homeowners have also shown a steady climb. According to the latest reports, the relatively stable mortgage interest rates spiked to their highest during the last month.
The report quoted on Yahoo Finance also suggests that the mortgage interest has climbed its peak in 30 years going from a moderate of 3.11% to 5.11% in a single swoop. These massive changes extend the financial burden for many citizens. On the one hand, the moderate-income homeowners are going to remain in debt for a longer duration. On the other side, many loaners might end up losing their mortgage contract and lapse out of the credit eligibility criteria.
All major real estate organizations are revamping their projections for the housing market in the near term. The financial analysts were anticipating quantitative tightening policies of the Federal Reserve. However, the current economic conditions have become more volatile due to the ongoing streak of COVID and the rapidly changing geopolitical situation around the world.
Mortgage Rates have Increased
Association of the Mortgage Bankers recently shared estimates indicating that the mortgage interest has spiked up to 4%, which postulates the highest average 30-year point. On the other hand, Fannie Mae claims that the mortgage remains are likely to stay within 3.3%. According to Zillow house market price projections, the average property is expected to inflate by 14.9% during March YTD.
At this point, many real estate companies are working on displaying smaller sales tags for the listed properties. Zillow researchers claim that real estate agencies are eager to maintain the demand in the housing market. The report by Zillow further explains that the number of listed properties has also remained lower than expectations.
The report also projects that more houses are expected to make it into the inventory levels sooner than later, which will automatically drive down the prices. A new research paper published by the Federal Reserve Bank of Dallas claims that the housing market is venturing into unchartered territory for the first time since 2000. BoD researchers’ real estate prices increase substantially greater than relevant economic fundamentals.