Last year was crazy for real estate! The price of houses increased and the interest rates for mortgage loans decreased, resulting in many homes getting bought fairly quickly.
What does 2022 have in store for those looking to purchase or refinance a home? The industry leaders recently released their predictions.
Mortgage Rates
According to Bankrate, the average rate for a 30 year loan fell in January 2021 to an all time low of 2.93%. Unfortunately, the Mortgage Bankers Association and industry experts, expect the rate on a 30 year mortgage increase in 2022, too at leas 4%.
Home Prices
The median price for homes here in Florida, from March 2020 to June 2021, increased almost 30%. While this type of growth may not be sustainable for upcoming years, experts predict they will not go down, they will continue to increase, just now as quickly.
Home Sales
Danielle Hale, chief economist of Realtor.com, predicts the sales of homes in Florida will increase in 2022 by another 6.6%. Construction of single family homes are expected to increase by 5% in 2022, due to Millennials purchase their first home.
Income Changes
Incomes in 2022 are also expected to increase as the job market becomes more competitive. Financing is possible for Buyers who have a contract for future employment. The new employment start date may be up to 90 days after their Closing.
Renovations
With rising mortgage rates and home prices, many owners are choosing to renovate and upgrade their existing home. Instead of purchasing a new home. According to a recent survey by Zillow, almost 75% of homeowners would consider a home improvement project in 2022. Finishing an attic 23%, improving or adding office space 31%, kitchens 46%, and bathrooms 56%.
If you are thinking about buying or refinancing a home, you want to make the best financial decision for your situation.
The experts at Palm State Mortgage Company will be happy to speak with you, one on one, to help find the best solution for you.
