The 2021 housing market was red-hot, and many people who were eager to buy a home inevitably had to put those plans on hold when soaring home prices made that impossible. This year, we’re starting off in a similar spot — only without record-low mortgage rates to help offset higher home values.
As of January 2022, the median existing home’s sale price was $350,300, reports the National Association of Realtors. That’s a jump of 15.4% compared to a year prior.
For buyers to be paying that much more for homes, it’s clear that demand is still strong. But will that trend continue into 2022? Or will demand for homes finally start to wane?
Mortgage rate hikes could drive buyers away
Right now, the average 30-year mortgage rate is sitting at around 4.5%. Considering that the 30-year loan didn’t even hit 4% at any point in 2021, that’s a pretty intimidating number — especially at a time when home values are so…