Home Sales Slow Down Amidst 0.75% Fed Rate Hike

Abstract

Over the past couple of years, we've seen low home prices and even historically low mortgage rates. Mortgage rates recorded an average of 3.11% in 2020, with December 2020 registering the lowest at 2.68%. And although mortgage rates had gone up since then, it has remained relatively within reach for the most part of 2021 until Q1 2022. Along with the rapid increase in mortgage rates, home prices have also gone on a constant upward trend over the past year. The strong demand for housing drove home prices and mortgage rates up. One, housing - or better yet, home ownership - demand is declining because of high housing prices and increasing mortgage rates. Even if interest rates are above 5% today, the lower housing rates are still attractive enough for investors. If you want to keep your vacancy rate to a minimum, we recommend you set reasonable rental rates.