What a ride it’s been! If you were involved in the home market in any way last year, we hope you were buckled in! Bidding wars, skyrocketing home values and low rates made it a year unlike any other for homeowners and buyers.
Let's take a look at some 2021 Mortgage Highlights:
Inventory fell to record-setting lows, with far fewer homes for sale than buyers wanted. The resulting bidding wars created record-setting price increases, too.
Rates remained low with a few small bumps along the way, but record rates of inflation placed them on an upward trajectory at year’s end. They are still below historical norms.
Rising values brought large increases in homeowner equity, so even those who weren’t moving benefitted from the strong market.
What’s ahead in 2022?
If there’s one thing the last two years have taught, it’s that predictions are fallible. Here’s what we can say with confidence:
Inflation typically brings higher interest rates. The Fed has already indicated it will likely raise policy rates (which influence mortgage rates) in 2022.
Housing inventory remains tight as we enter the new year, though it is loosening. Continuing demand will create higher prices, but rates of increase will likely slow.
A strong jobs market and rising wages will help to keep demand rising and affordability in check.
Refinancing will probably continue its slide after a boom in 2020. But we’re already seeing many homeowners who previously refinanced to a low rate take advantage of their newfound equity to access cash for home improvements, debt consolidation and other investments.
Please know that the team at Greenway Mortgage is here to help with any questions or home financing needs you may have. The offer extends to your friends, family and co-workers – your referrals are always welcome and greatly appreciated.
Thanks, and we wish you a happy, healthy and prosperous new year.