Odeta Kushi, Deputy Chief Economist, First American:
“Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”
Danielle Hale, Chief Economist, realtor.com:
“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”
There seems to be a consensus that rates are on the rise, but what does that actually mean in terms of actual percentage points? See our graph below:
National predictions are great for a macro scope, but we also wanted to know what was happening here in our own backyards of Northern Michigan, so we consulted our go-to mortgage expert for his local perspective:
Jeremy Kilbourne, Lead Loan Officer, Arch Mortgage North:
“Mortgage rates relative to inflation are still very affordable right now. Rates will go up throughout the year but if you look at where rates were before covid, or even over the last 20 years, we will still be historically low.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”
George Ratiu, Manager of Economic Research, realtor.com:
“We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”
See our graph below for projected percentages of growth:
What Does This Mean for Buyers?
What Does This Mean for Sellers?
If you’re thinking of buying or selling, 2022 is shaping up to be your year. Let’s connect today to discuss your goals and how you can maximize the unique opportunities you have in today’s housing market. We feel fortunate and proud to have helped 195 families in 2021 attain their homeownership dreams, and this year we’d love to help you attain yours!