Buying a Home in 2022? Here Are Some Things to Consider
For the past two years, the housing market has witnessed historically low mortgage rates. This, coupled with low inventory, created a selling frenzy with elevated prices. While it is hard to say for sure what 2022 holds, many experts continue to predict much of the same.
If you are planning to buy in 2022, here are some things to anticipate:
1) Inventory Will Remain Low
Even before the pandemic, there was low housing stock in the U.S. Covid-19 supply chain troubles and a labor shortage have only made things worse. Though builders are trying to ramp up production, inventory will remain scarce.
2) Interest Rates will Rise
The Federal Reserve is expected to raise interest rates a few times, which means mortgage rates will likely rise. Leading experts predict the average 30-year fixed mortgage rate will reach 3.60% by the end of 2022, compared to the current 3.30% average.
3) Prices Won’t Drop
Those hoping competition will slow are likely to be disappointed, according to industry experts. Economic trends such as tight supply and high demand, will continue to give sellers the upper hand. Potential buyers can expect bidding wars on many homes, particularly in the spring and summer.
4) Young Buyers Will Be At a Disadvantage
First-time buyers will remain at a disadvantage versus repeat buyers. Not only are homes much more expensive for younger buyers to afford, but homeowners are staying in their homes longer and are living longer. This makes affording a down payment more challenging and limits those who can buy a home.
5) Buyers Should be Prepared
It’s important to be prepared so you can be ready to go when you find the right home. Know what you want, do your research, watch for new listings and be prepared to visit the listing quickly and act swiftly if you decide to make an offer. That said, don’t overpay. Prices will be up, but that doesn’t mean to take something outside of what’s reasonable for your budget.
Remember, the NIHFCU is Here to Help
Our no-pressure mortgage team is ready to help in any way we can. Call us at 855.203.4747 or click here to get a no-obligation pre-qualification so you can shop for a home with confidence. Ask about how you can earn up to $2,000 in closing credits when you apply by February 28 and close/fund by April 30.1
Last, register for our free HomeAdvantage® program. It can help you search like a pro and potentially save THOUSANDS on your home purchase!
• Search new homes powered by MLS listing data
• Get Alerts as soon as new home listings hit the market
• Neighborhood research tools with crime data and school rankings
Plus, use one of our exclusive HomeAdvantage® agents to buy or sell, and you’re qualified to earn a reward equal to 20% of your agent’s commission. 2
