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In spite of the prices rising, mortgage rates have thankfully remained near historic lows.
The 30-year rates are still hovering around 3% and the 15-year rates are around 2%. Many experts believe they to rise soon pushing many Americans to wonder if they should buy homes even if it is not.
Mortgage interest rates have started to rise and with inflation fueling, this trend has continued into 2022.
The only question now is, whether the rise in interest rates will bring down-home price said the managing partner of NYC real estate law firm Romer Debbas, Pierre Debbas.
Daryl Fairweather, Redfin’s chief economist, also expects the mortgage rates to gradually rise to 3.6% by the year. Because of the Feds tapering mortgage-backed security purchases, he feels it will affect the mortgage rates.
The chief economist at the National Association of Realtors (NAR), Dr. Lawrence Yun, predicts the 30-year fixed mortgage rate to increase to 3.5% by the year-end.
Realtor.com forecasts an average mortgage rate of 3.3% throughout the year, and reaching 3.6% by end of 2022, Bankrate predicts the rates to hit 3.75% at some point during the year.
The chief financial analyst at Bankrate, Greg McBride, feels all these ups and downs will continue as the economic growth creep in.
During mid-2021 the home prices rose to a nearly 20% rise though the pace may slow, the prices are likely to go up.
The National Association of Realtors predicts housing prices will climb 5.7% in 2022, while Realtor.com says it’s more like a 2.9% rise.
The CoreLogic Market Risk Indicator, which looks at the health of housing markets across the country, predicts that some markets may also see prices fall over the year.
Even though buying a home right now is highly advantageous, with the real estate appreciation and tax benefits like mortgage-interest deductions, it’s not always the best move.
Experts recommend that if you don’t plan to stay in the home or area for more than say 3-5 years, you should go for renting which is a better option.
Reference Source: Market Watch
