Spring Buyer Season Comes Early.
Watch the original video: March 2022 Mortgage Monthly Update
Monthly Mortgage Market Update for March 2022. In this month’s video I talk about current mortgage rates, rent prices, the market moving forward, and the big question all buyers are asking. Watch the video above to learn more. (Below is a summary of each topic I discussed in the video)
Market Remains Hot
Nationwide we are still seeing multiple offers on homes and homes selling above asking price. It seems like rates rising into the 4’s has not affected the market. If anything rates rising has made the market hotter as everyone is concerned rates will continue to rise through the rest of the year.
If we look at Shasta County on a year or year level, we are seeing less homes closing than we were last year. A lot of this has to do with the fact that Covid is largely behind us and we are reverting back to a more normal market.
Rent Prices Continue to Rise
Nationwide rents continue to rise. Folks are being priced out of housing, which is one of the major problems in an inflationary market, as it really affects middle class families. It is both expensive to rent and buy right now and I see this affecting people on a daily basis.
Moving Forward
One of the tools the Federal Reserve has to combat inflationary times, is to raise interest rates. It is anticipated that this month we will see the Fed Rate rise by 25 basis points. Frankly, this is not a drastic rise and will most likely not change things very much. We have been warned of this for the past six months and the markets have preemptively reacted in anticipation to this potential rise. It will certainly be interesting to see how the Fed Rate will impact housing and mortgage rates. It has also been interesting to watch the Geo-Political events and how this will eventually flow into the already inflated American market in terms of oil, energy costs and more.
The Big Question
We still have many people saying they are going to wait to buy. The follow up question that everyone is asking is ‘what are you waiting for?’ because this strategy has not worked for those who have been waiting to buy for the past five years. If you are waiting for lower rates and lower home prices, you may be waiting awhile.
If we look at the big problem that still exists, there are simply not enough homes, apartments, condos, townhomes, ect. to meet the demand of the rising population in our country. Even if we begin to build at a faster rate we will still be one million units behind for the next decade. From what I am seeing and what most experts predict we will not see rates have a huge impact on the market. The market will remain hot and we will continue to see appreciation for those buying homes.
The big question you need to ask yourself if you do not own a home right now is ‘What is the cost of waiting?’. I can tell you from experience that most people who have not bought a home in the past 2 or 3 years and have rented, have not benefited from waiting.
Please Reach Out
If there is anything I can do for you or any question you may have, please do not hesitate to reach out, I would love to be a resource for you. God Bless and talk to you soon.