We are at the beginning of the final quarter of 2021, which has brought a year filled with strong appreciation gains and record low interest rates. With 2022 on the horizon, analysts are beginning to weigh in on their expectations for next year. In regards to interest rates, we are already beginning to see an increase from the record lows we experienced in previous quarters of 2021. This aligns with previous reports of a gradual increase going forward, while still remaining relatively low. In the end, inflation pressures are expected to push rates higher, which makes the argument to buy sooner than later.
As far as home prices are concerned, analysts do see an even further increase in 2022 from the record appreciation in values we experienced this year. The National Association of Realtors (NAR) reported that they foresee a 5.5% climb in 2022. In the immediate future, Zillow expects a short-term increase of 4.7% by November of 2021. Jonathan Lee, senior director of mortgage sales at Zillow stated, “That’s incredible growth compared to historical norms, but slower than the current pace. Inventory has shown signs of finally heading up, which would rebalance the market to some extent and start to moderate the home price explosion we’ve seen over the past year or so.” Overall, with rates expected to trickle up, and home prices continuing to escalate, now seems like it may be the perfect time to purchase a home.
Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.
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