2022 Housing Forecast Update

Published:
January 5, 2021
Last updated:
January 15, 2022

This past year has been an interesting one to say the least. And while most industries have suffered throughout the health crisis, the real estate industry has been very active throughout the year, all across the country. Buyers may have stalled early on when the pandemic first hit, but things quickly picked up shortly after.

As such, home prices have increased at a rapid pace throughout the past 12 months, and mortgage rates have remained at low levels. Buyer demand and ultra-low mortgage rates combined to create a very competitive real estate market.

In This Article

What will happen in 2022? Will the same pace keep up in the new year? According to experts, the answer is yes.
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Housing Forecast 2022

Experts forecast an optimistic year for the housing market. Over the past 12 months, home prices across the US increased by 19.3%. And in 2022, they’re expected to increase at a rate of 14.3%, according to real estate research firm Zillow.

Fannie Mae, Freddie Mac, the MBA, and NAR also have their own forecasts for home prices in 2022, which seem to be much lower than Zillow’s prediction:

  • Fannie Mae forecast: +7.4%
  • Freddie Mac forecast: +7.0%
  • MBA forecast: +5.1%
  • NAR forecast: +2.8%

As you can see, there is a general consensus that suggests that home prices will indeed rise over the next year. Similar trends are being forecasted for the Pacific Northwest.

Mortgage Interest Rates

While home prices may be on the rise, buyers can still take advantage of very low mortgage interest rates to make their home loans more affordable. Experts agree that interest rates are projected to remain at or near 4% in 2022, fueling strong buyer activity.

This is a similar story to what we’ve seen throughout 2021, with mortgage interest rates remaining around 3%.

2022 Projected Mortgage Interest Rates

The following mortgage interest rate projections for 2022 have been released by the following entities:

  • Fannie Mae: 3.3%
  • Freddie Mac: 3.5%
  • MBA: 4.0%
  • NAR: 3.5%

From these forecasts, it’s safe to say that mortgage interest rates will continue to remain very low throughout 2022.

Rates By Decade

To give you a perspective on what mortgage interest rates have been doing over the past few decades, take a look at the following:

  • Today: 3.1%
  • 2010s: 4.09%
  • 2000s: 6.29%
  • 1990s: 8.12%
  • 1980s: 12.7%
  • 1970s: 8.86%

Clearly, the current mortgage rate is the lowest it’s been, giving buyers more incentive to capitalize on these low rates and get into the real estate market in 2022.

Home Sales

Home sales are forecasted to remain relatively stable in 2022 while interest rates remain low, though buyers will still be actively in search of a home in the new year, which will continue to fuel the real estate market across WA, OR, CO, and ID, as well as the rest of the country.

2022 Total Home Sale Forecasts

Fannie Mae:

  • 2021 forecast: 6.8 million
  • 2022 forecast: 6.5 million

Freddie Mac:

  • 2021 forecast: 6.8 million
  • 2022 forecast: 6.8 million

MBA:

  • 2021 forecast: 6.9 million
  • 2022 forecast: 7.3 million

NAR:

  • 2021 forecast: 6.8 million
  • 2022 forecast: 6.8 million

Could 2022 be the year that you make a move and buy a home in WA, OR, ID, or CO? If so, you’ll need a mortgage to help finance your purchase. And Sammamish Mortgage would love to help!

Today’s Mortgage Rates

Why Choose Sammamish Mortgage?

Sammamish Mortgage has been in the mortgage industry since 1992 and has assisted many buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, Colorado, Idaho, or Oregon, we can help. We offer plenty of mortgage programs with flexible eligibility criteria.

Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.

Get an Instant Mortgage Rate Quote Today

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