We recently recapped the developments in the mortgage market in 2021, and now it’s time to look forward to some of the big predictions for 2022. Seemingly, predictions of a real estate market crash have declined. Instead, we many see additional hurdles for prospective homebuyers heading our way.

One such prediction by Realtor.com suggests further increases in home prices as well as mortgage rates, driving up the costs of purchasing single-family homes and condos, alike. In fact, Realtor.com predicts increases in all areas of the housing market, including higher mortgage rates, additional inventory, and increased sales.

While some, like those at Realtor.com and Goldman Sachs, believe we will see continued increases in home sales as a result of a revival in inventory, others like Lawrence Yun, Chief Economist at the National Association of Realtors, say the opposite. Yun believes home sales will remain strong but will not out-perform 2021. Yun does expect a rise in inventory as a result of new construction and the conclusion of forbearances that will push existing property owners to list their homes. However, despite this forecast, Yun expects a more predictable and mild market ahead.

Where will mortgage rates end up? Most experts seem to agree that we will see mortgage rates continue their climb until they reach about 3.6 percent by the end of 2022.

What does that mean for sales prices? Despite the decrease in buying power that will result from rising mortgage rates, and subsequent decline in price growth, forecasts suggest a continued rise in home prices. Luckily, price growth is also expected to slow down in pace, but the slower climb won’t do much to help buyers with more modest budgets. Instead, Redfin predicts a shift towards more affordable condos as well as a continued migration to areas further from expensive cities (thanks to employees continuing to work remotely).

Real estate professionals catering to the rental and multi-family markets will also want to keep an eye on projections for inflation in 2022, especially because rents are expected to continue to climb, as well. Rising rents are not only a result of, but a cause for, rising multi-family sales prices. Both Redfin and Realtor.com predict a 7 percent growth in the rental rate across the country, which is expected to outpace home price growth. This rent spike could, however, make buying a more attractive option and a valuable point for real estate professionals looking for additional leads in the New Year.

Real Estate & Mortgage Data to Help You Prep for 2022

On that note, utilizing patterns visible with reliable real estate and mortgage data, as well as forecasts for 2022, can help you form a winning strategy to boost your team’s performance in the current ever-changing market. We offer a library of up-to-date vital market intelligence you’ll want to check out just for that purpose. However, some of the most useful for setting ambitious and attainable benchmarks, and entering the new year prepared, are our year-end Loan Originator and Mortgage MarketShare reports. Track the performance of origination professionals in your market to see how their numbers compare to your own or target top performers to recruit. Then check out market trends in your neck of the woods and find promising territories to expand into with your Mortgage MarketShare report.

If you have any questions or want to speak with a data specialist to discuss specifics, feel free to reach out today!