The housing market is constantly changing, and housing market trends come and go. Given that the housing sector is highly localized, with varying conditions in every state, city, and metro area, you cannot expect things to stay the same.
Despite the Federal Reserve’s announcement that it will begin to trim its purchases of mortgage securities, interest rates are unlikely to increase sharply in the current economic environment. Even if the 30-year fixed-rate mortgage rate increase to between 3.75% and 4.25% by the end of 2022, interest rates will remain low.
Property prices will continue to rise at an accelerated rate, albeit slowly. Buyers’ purchasing power will sustain because of economic growth, with median home sales prices likely to increase by 2.9% in 2022.
According to Freddie Mac, the availability of new and existing houses for sale in the United States is at an all-time low. The shortage of entry-level, single-family homes that first-time buyers can afford is the driving factor of the housing crisis.
According to a new report from ATTOM data solutions, foreclosure activity is rising. Although residential foreclosures were down last year owing to lockouts and moratoriums, foreclosure filings are up.