Zillow forecasts existing-home sales to total 6.35 million in 2022, up over the estimated 6.12 million that closed out 2021.* If you’re looking to make a move this year or refinance to consolidate debt, renovate your home, lower your monthly payment, or reduce your term, here are a few things you’ll want to keep an eye on.
The window on super-low rates may be closing.
The Fed is likely to raise interest rates and dial back their bond-buying program this year. These changes combined with higher inflation will probably add up to higher mortgage rates later in 2022. The chief economists from CoreLogic, the National Association of Realtors, and the Mortgage Bankers Association forecast 30-year fixed rates to be 3.4%, 3.7%, and 4% respectively by the end of 2022.** Even though these rates are higher than last year’s near-record lows, they’re still great rates. You can also lessen the impact of the increase by financing with us — as an LMCU member, you can receive an additional 0.125% off your interest rate with our MaxMortgage discount.***
Home values are projected to continue to rise.
The high demand for houses will likely continue this year and keep home values rising, but not at such a high rate as 2021. CoreLogic’s Home Price Index forecast has the annual average rise in the national index slowing from 15% to 6% in 2022,**** while the National Association of Realtors is expecting around 5.7%.† A dip in home values isn’t projected anytime soon, so becoming a homeowner this year is likely still a good move.
More homes will be hitting the market than in 2021.
With interest rates going up and home prices still on the rise, many experts predict more homeowners will consider selling their homes in 2022 compared to 2021. Builders will be getting the new homes they built last year to market as well. This is all good news for buyers, but with housing demand still being so high, it’s a good idea to get pre-qualified by an LMCU loan officer. Then, when you find your dream home, you can make your offer quickly and stand out from the other offers.
If you’re ready to refinance or looking to make a move in 2022, connect with one of our expert loan officers today at LMCU.org/Mortgage or (844) 754-6280 and ask about our MaxMortgage discount.
*Zillow’s Hot Housing Takes for 2022. Zillow, December 8, 2021.
**Mortgage Interest Rates Forecast: How High Will Rates Go In 2022?. Forbes, January 3, 2022.
***Mortgage payment must be an automatic payment that comes from an LMCU checking account to receive the MaxMortgage discount.
****2022 Housing Outlook. Corelogic, December 2, 2021.
†Real Estate Forecast Summit. National Association of Realtors, December 15, 2021.