Interest rates on home loans continue to rise, which has some housing market experts thinking prices could drop in 2022-23.
In 2021, the housing market exploded, raising the prices of homes more than in 2007 during the financial collapse.
According to AS News, there are reasons for the growth in the housing market last year.
- Disposable income shifting
- Credit and its cost and access
- Supply issues
- Rising labor and material costs
The Federal Reserve says these things are not things that would cause a market bubble.
This does not mean a bubble will not happen if the market continues to go this way.
What is happening to influence the housing market going forward?
The Federal Reserve is raising interest rates in an attempt to slow inflation.
This will directly impact that rates people receive when applying for mortgages.
Currently, a 30 year fixed rate mortgage is 5.11%, the highest it’s been since 2011.
Projections made show that prices may not drop, but they will not rise at the rapid rate they did in 2021.
Supply is likely to remain low like it has been in the housing market.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected]