As an outcome of the COVID pandemic, several aspects of the housing market were affected in the US. Both housing prices and mortgage rates have reached historic lows.

The outcome was a surge in the number of large-house purchases made by Americans.

It's possible that after record-breaking conditions in 2020 and 2021, the housing market may cool off dramatically in 2022.

In 2022, these are the trends in real estate that will be most important to keep an eye on.

Mortgage Rates to Increase

The price of a variety of commodities is on the rise. While interest rates were temporarily lowered due to the conflict in Ukraine, other reasons are already pushing them back up. The Federal Reserve says that rate increases are coming soon.

In January of last year, mortgage experts had predicted that rates would continue to rise from the all-time low of 2.93 percent. Although they fell sharply in 2020, almost everyone anticipates an uptick in interest rates this year.

Slower Price Appreciation

Since March 2020, the pandemic’s start, the median price of homes sold by Realtors has increased by 29 percent, from $280,700 to $362,800. The price has remained steady at $350,000 since then.

Inadequate Housing Will Remain Out of Reach For Many

The COVID pandemic has worsened housing affordability by taking money from Americans’ paychecks and causing a housing shortage. Mortgage rates have fallen to historic lows as a result of the crisis, which is good news for prospective purchasers.

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