We have all been through some strange times lately when it comes to normalcy and the economy. So it’s hard to look ahead and predict what the mortgage trends in 2022 might be. But here are a few things we’ve noticed that could be an indication of things to come.
The Speculation and Implementation of Rising Interest Rates
The U.S. mortgage interest rates have climbed for the fourth week in a row. This has buyers and sellers concerned as they blame inflation fears. But even though mortgage rates have risen rather quickly, the amount they have risen hasn’t been much.
The reason for this rise is due to the anticipation of the Federal Reserve raising interest rates up to four or more times in 2022. Therefore, the trend, as you would expect, is continued mortgage rate increases through this year and beyond.
That means now is the time to do everything you can to get buyers and sellers into the market before the rates increase more.
Skyrocketing Home Prices and Available Inventory
Yes, we hear you saying, “But what about the skyrocketing home prices and the limited available inventory?” Well, yes, that is going to be a continued problem. In fact, while Zillow predicts a slight slowing of the housing market and the inventory remaining low, the housing market is still predicted to rise about 11% in 2022. This number is down from the 19.5% increase in 2021.
That means with rising interest rates, homebuyers would be better off buying a house now. If they wait, they will end up paying more for the house and more in interest as well.
The Home Selling and Buying Process Has Changed
The pandemic has significantly changed the way we do everything, including buying and selling homes. This includes remote working and using online options versus in-person interactions.
Since the pandemic lingers and we don’t know when or if it will ever go away, it looks like remote working and using online resources to buy and sell homes is here to stay—probably even once we get past the pandemic conditions of today.
Real Estate Tools More Widely Used by Sellers and Buyers
As we talked about above, the home selling and buying process has changed and that includes the tools now used in the real estate process. The way people buy and sell homes has changed and their expectations are changing along with them.
Here are some of the tools currently trending and changing the way people experience the real estate landscape from start to finish.
Artificial intelligence applications
Integrated home buying services
Virtual loan offices
That means the companies who change and implement these tools will be the most successful. And that includes Realtors, title searchers, lenders, home inspectors, appraisers, and notaries as well.
If you want more information about this ever-changing real estate landscape or other industry-related topics, please Contact Simple Title Closing & Escrow PLLC today. We are proud members of this community and have more than 100 years of combined experience ready to assist you.