Local Real Estate June 15, 2022

National 🇺🇸 Real Estate Market Update – May 2022

Inventory is still low and home prices are expected to continue to drive. These are huge factors when we look at what the market may be looking like in the coming months.
Hi I’m Maya Crelan Ray with David Lyng Real Estate, let’s take a look at what experts have to say about how all this is going to affect the market and your ability to buy or sell a home. The National Association of Realtors or NAR says, “While higher short term interest rates will push up mortgage rates I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30 year fixed mortgage rate to continue to rise, although we aren’t likely to see big jumps that occurred over the past few weeks.” Inflation is driving this rise in interest rates, and as long as that continues we will continue to see a similar rise in interest rates. Now Freddie Mac says, “History suggests that when rates rise, there is an initial bump in home prices, as many move quickly to buy a home before rates increase further. But after that period, home prices slow. Freddie Mac analysis shows that a 1% increase in mortgage rates results in home price appreciation that is four percentage points lower. For instance, a 1% increase in mortgage rates would change home price growth from 11% to 7%.” This means that though homes will continue to appreciate, we won’t see the high speed increase like we have seen in the past.
That’s what the experts are saying we will see in the market, reach out to me if you have any questions about the market or where it may be going. Maya Crelan Ray with David Lyng Real Estate and as always I hope you have an amazing day.