What Does the New Normal Look Like? | Think Realty | A Real Estate of Mind

Abstract

The instability with interest rates are creating more challenges. Supply chain shortages, impatient buyers, and a tumultuous balance of mortgage rates suggest 2022 will be just as much as or more of a challenge than during the pandemic. The war in Ukraine and associated geopolitical tensions have created more demand for short-term debt, leading to sinking interest rates. Mortgage rates in early March fell under 4% in the largest two-day drop since March 2020-this, just when Federal Reserve was expected to raise interest rates in the very near future. Housing prices have risen by record numbers since 2020 and may continue to rise, but likely not at the current astronomical rates. Experts are predicting a continued increase in home prices but at a much slower rate in 2022, likely back to the more average rate of 4.2%, or even a bit lower. Low interest rates with low unemployment are not sustainable either.