Home A Loan Mortgage, LLC
(404) 889-8411

2022 Real Estate Market Predictions

Here's what to expect in real estate for 2022.
Aug 31, 2022

Real estate market predictions are somewhat like weather forecasts in that no one’s capable of being 100% accurate, but an industry expert can make a reasonably close prediction. With that in mind, here is the general consensus about what to expect in the housing market for the rest of 2022. 

However, don’t let the predictions determine too much about your decision to buy a home — your finances and current circumstances should also influence your path.

Home Prices and Sales

House prices are strongly influenced by supply and demand. So while there was a recent slight dip in home prices, overall, property prices have increased –a trend likely to continue due to sustained high demand.

One of the key factors that have caused the increase is the housing supply shortage. Labor shortages and supply chains have impeded the construction of new stand-alone houses. In previous years, new house construction assisted in regulating the demand for houses. But because of the shortages, house prices may continue to increase.

Fannie Mae forecasts house prices to be up 10.8% for 2022. That’s a big jump from its prediction of 7.6%  several months ago. But remember that these predictions can fluctuate almost daily.

Mortgage Rates

Interest rates will likely continue to increase and level throughout the year, as reported by earlier 2022 forecasts. The previous year, real estate experts forecasted that average interest rates would break the 3% range in 2021. However, they did not increase much higher than 3.1 - 3.3%. But things are different for 2022. As of Aug 2022, the 30-year fixed-rate mortgage average interest rate hit 5.55%, as reported by Freddie Mac. Some of this increase was triggered by the Federal Reserve’s late fed fund hikes.

Rates also fluctuate daily, but generally, they’re about 2% higher than 6 months ago. 

Remember, all these numbers will change as new data is collected. It’s also important to note that current rates are still lower than the average rate in the early 2000s. 

Is 2022 A Good Year to Purchase a House?

2022 is a great year to purchase a house if you’re ready. Our housing market has experienced many changes over the years, so when considering it all, know that the current housing market shouldn’t be the only factor you should consider in purchasing a home.

2 things that really matter when purchasing a house are your personal situation and finances. No matter what’s happening in the housing market, you’re ready to purchase a home when your debt is managed, your income is steady, and you qualify for home financing that you can afford. 

Bottomline

Based on predictions, the housing market will continue to change this year. House prices and mortgage rates will continue on an upswing. Considering that prediction, starting your homebuying journey is better now because the high demand outpaces the supply.

If you’re ready to buy a new house, give our mortgage professionals to help you get started.

PRIVACY POLICY

Customer service is very important to us. As we continue to improve and expand our services, we recognize our customers' need and desire to preserve their privacy and confidentiality. Safeguarding our customers' privacy is also very important to us. We have adopted standards that help maintain and preserve the confidentiality of customers' nonpublic personal information. The following Statement affirms our continued efforts to safeguard customer information.

Information We Collect

We gather nonpublic personal information about our customers as may be necessary to conduct business with our customers. We collect nonpublic personal information about you from the following sources:

  1. Information we receive from you on applications or other forms, over the telephone or in face-to-face meetings, and via the Internet. Examples of information we receive from you include your name, address, telephone number, social security number, credit history and other financial information.
  2. Information about your transactions with us or others. Examples of information relating to your transactions include payment histories, account balances and account activity.
  3. Information we receive from a consumer reporting agency. Examples of information from consumer reporting agencies include your credit score, credit reports and other information relating to your creditworthiness.
  4. From employers and others to verify information you have given to us. Examples of information provided by employers and others include verifications of employment, income or deposits.

Information We Disclose

Your personal information will only be retained for the purpose of providing you with our response to your query and will not be made available to any third party except as necessary to be disclosed to any related entity for the purpose intended or as required to be disclosed under law.

By submitting data on our website, the visitor is providing explicit consent to transmission of data collected on the website.

We treat data as confidential within our firm and require a strict adherence of all our employees to data protection and our confidentiality policies.

All visitors, however, should be aware that our website may contain links to other sites that are not governed by this or any other privacy statement.

We reserve the right to amend (that is, add to, delete or change) the terms of this Privacy Statement from time to time.