As an outcome of the COVID pandemic, several aspects of the housing market were affected in the US. Mortgage rates plunged to record lows, and the price of homes increased dramatically. As a result, Americans bought larger homes in record numbers.
Mortgage rates are on the rise due to consumer spending and rising inflation, as per Sam Khater, chief economist of Freddie Mac. Undoubtedly, record-low mortgage rates contributed to the housing boom of 2021 and 2020, and many believe it contributed the most to the growth.
Lawrence Yun, the National Association of Realtors’ chief economist, predicts a temporary drop in home sales after a spectacular year for housing in 2021 and 2020. The association forecasts that home prices will appreciate by 2.8 % in 2022, compared to 14.7% in 2021.
3) Reasonable Housing to Remain Out of Reach for Many
The COVID pandemic has worsened housing affordability by taking money from Americans’ paychecks and causing a housing shortage. As a countertrend to the crisis, mortgage rates have sunk to record lows, softening the blow for buyers.
5) Putin’s Decision to Wage War Could be a Blow to the US Housing Market
In the immediate aftermath of Russia’s invasion of Ukraine last week, markets worldwide were sparked into a violent frenzy, resulting in increased insecurity and the possibility of reduced consumer spending. However, it remains to be seen whether the conflict in Ukraine will increase the home prices in the United States.