Yes, mortgage rates went up!
No, the world hasn’t ended for buyers on a tight budget.
Higher interest rates will have some impact on home sales. Actually, the impact began earlier this year as buyers rushed to buy before the rates rose. This week’s rates from Freddie Mac show what’s happening to buyer power.
But as rates rise and the buyer pool shrinks some sellers may to adjust listing prices to meet the new normal. Depending on which prediction you believe- homes will continue to appreciate in 2022 but not at the same rate as 2021.
The chart below shows 10 years of the ups and downs of mortgage rates shows we’ve been here before. Buyers and sellers always adjust to the changes.
In 2012 the average sale price for a single-family home in the Cincinnati Multiple Listing Service was $159,695. We ended 2021 with an average sale price of $290,057 and year-to-date 2022 $289,475.
We need more homes for sale at all price levels or the prices will continue to inch up -in spite of mortgage rate hikes.