Dear Friends,
The war in The Ukraine is top of mind, and for many, as we head into Spring, so are its effects on the housing market.
Remember when Interest rates spiked at the beginning of the pandemic then bounced around over the next 24 months ? Also seemed like they were really taking off at the end of 2021. Enter Putin’s bloody war and rates began to drop. Then, most recently, after the Fed tightened policy and lenders responded, we saw another abrupt hike.
Are you wondering like many if our robust real estate market is coming to an end, or at least tapering off ? Well, not according to Matthew Gardner, Chief Economist, at leading real estate news outlet, Inman News. Gardner says he does not think any lower rates will return any time soon, we’re still at historic lows, and despite the war in Europe, the slightly higher rates are unlikely to significantly impact our market.
Gardner further predicts the year will end with rates no higher than 4.5%, and points out that history has taught us most buyers start pulling back when rates reach closer to 5%, Thus, he maintains that housing supply will remain tight and “our market will continue to favor home sellers throughout 2022.”
Here’s to better days ahead.
Happy Daylight Savings and Happy Almost Spring !
Joni
