Are we sick of hearing it yet? Inflation, supply chain, overpaying for houses, blah blah blah. It’s a daily discussion in our print, digital and online media and every sensationalized blog on the Interwebs. You may be sick of hearing it but here comes the practical application for home buyers and sellers. Higher home mortgage rates. Candidly it’s shocking home mortgage rates haven’t yet gone up significantly but those days are coming to an end. Yes, it’s true that the Federal Reserve doesn’t directly move the home mortgage rate needle but their trends DO affect the mindset of the mortgage rate market. That needle is going to be moving repeatedly in 2022, likely multiple times.
SO what does that mean for home buyers and sellers? For buyers, get ready for the stampede. The chatter about rates going up will likely lead to…ahem…a strong demand for mortgage money early in 2022 (read people throwing money at houses). Think that demand was high early in ’21? It’s going to accelerate in early 2022.
For home sellers it will mean a great start to the new year and selling their properties but as ’22 wanes and rates do go up it will mean less demand across everything but first time home buyer territory. Get your home sold early next year as it will be one of the best home selling seasons for some years to come.