Your Homebuyer Market Update
What you need to know now about this year's trends
Knowledge is the key to making good decisions - and few decisions are as important as buying a home. That's why we've compiled expert mortgage rate analysis and six months of data on median home sales prices, housing inventory levels, and new homes built. Whether you're already house hunting or considering your options for the future, understanding these market trends will help you perfect your plans.
The future of mortgage rates
“Will interest rates go up?” is one of the most common questions our loan officers hear. Freddie Mac's average 30-year fixed-rate mortgage rate rose in September to 5.89% , leading many homebuyers to be concerned that rates will continue to rise.1
However, leading experts have voiced confidence that we've seen rates peak. With gas prices slowly dropping, consumer price inflation is likely to settle - allowing mortgage rates to come down for homebuyers. In fact, some industry specialists anticipate rates will remain around 5.5% through the rest of 2022.2
Price relief may come soon
While rates are important, they're only one part of the homebuying picture. Inflated housing prices have been another key trend this year, as seen in the National Association of Realtors® monthly existing-home sales housing snapshot.3
Monthly median sales price
| February | $357,000 |
| March | $375,300 |
| April | $391,200 |
| May | $407,600 |
| June | $416,000 |
| July | $403,800 |
- https://www.freddiemac.com/pmms
- https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/
- https://www.nar.realtor/infographics/existing-home-sales-housing-snapshot
Despite early increases in housing prices, experts believe relief is coming for the rest of the year. The drop in July was an encouraging sign, and downturns in major housing markets - such as Seattle, San Francisco, and Denver4 - indicate homes may become more affordable in your local market soon.
More homes on the market
But why would home prices drop? While rates have driven down demand, increased supply is another reason to anticipate this trend. Over the same six-month period, the National Association of Realtors® found a steady increase in housing inventory availability at the month's median sale price.
Monthly housing inventory
| February | 1.7 Months |
| March | 2.0 Months |
| April | 2.2 Months |
| May | 2.6 Months |
| June | 3.0 Months |
| July | 3.3 Months |
While the number of homes on the market is still far from pre-pandemic levels, the uptick in homes for sale should give house hunters more buying power.
Construction completions are increasing
Another piece of the housing puzzle is new home builds. While the pandemic halted most construction, Census data shows projects are picking back up.
New privately-owned housing units completed, seasonally adjusted annual rate5
| February | 1,380,000 |
| March | 1,366,000 |
| April | 1,339,000 |
| May | 1,440,000 |
| June | 1,409,000 |
| July | 1,424,000 |
To find the most availability, see where new builds are being finished in your area - or consider financing the construction of your dream home.
Find your market guide
While understanding trends is helpful, the best way to win in this market is to work with an expert. Contact your CrossCountry Mortgage loan officer to stay up to date on mortgage rates, your local market, and more!