As 2022 draws to a close, you might be wondering what will happen in the housing market in 2019 and what that would entail if you’re considering buying a home.So that you can make the best decision possible, have a look at the most recent professional predictions for home prices and mortgage rates.The Inflation Will Continue To Influence Mortgage RatesMortgage rates have certainly increased significantly this year as the market reacts to high inflation.

The increases we’ve seen have been quick and abrupt; at the end of last month, the average 30-year fixed mortgage rate even crossed the 7% mark.In fact, this is the first time in more than 20 years that they have reached this high (see graph).

In their latest quarterly report, Freddie Mac explains just how fast the climb in rates has been:

“Rates were less than 3% just one year ago.Accordingly, even if mortgage rates aren’t as high as they were in the 1980s, they have increased by more than 100% in the last 12 months.Never before have mortgage rates doubled in a single year.It’s difficult to predict with certainty where mortgage rates will go from here because we’re in uncharted terrain.

Although predicting mortgage rates for the future is far from an exact science, experts do concur that rates will continue to respond to inflation in the future.

Mortgage rates will probably increase if inflation remains high.

Home Price Changes Will Vary by Market

Home prices have moderated this year in several cities as buyer demand has decreased in response to those higher mortgage rates.expert predictions for the upcoming year are inconsistent. According to general consensus, local market conditions will influence how much housing prices increase, with more significant changes that occur in warmer areas.

“House price appreciation has slowed in all 50 cities we track,” says Mark Fleming, Chief Economist at First American, “although the decline is often more dramatic in locations that witnessed the largest peak appreciation rates.”

In short, some places might still experience modest price growth while others might experience modest price declines.everything is dependent on other elements operating in that regional market, such as the balance of supply and demand. This may be why experts are divided on their latest national forecasts (see graph ).

Bottom Line

Let’s connect so you get the most recent information on what experts are saying and what it means for our area if you want to know what’s happening with home prices or mortgage rates.

Find out why Kaya Homes is the leader in Long Island real estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin , North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, and Freeport area http://kayahomesny.com.

Mon, 21 Nov 2022 22:01:38 +0000

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