The past few years have brought rising home prices, longer construction times, labor shortages, and more. Now we are facing even more uncertainty as the conflict between Russia and Ukraine unfolds. Below, you will see summarized data, research, and predictions from housing market experts.
*The content below was gathered and summarized to provide a quick look into the current state of the housing market. All facts, figures, and research were created and executed by experts, not Middletown Homes employees. All sources are linked at the bottom of the article.
Interest rates are predicted to rise as the Eastern European conflict continues. Overall home affordability will likely decrease as rates climb, even if home prices remain steady. PNC Chief Economist, Gus Faucher, stated that this conflict could lead to higher energy costs globally, cuasing higher U.S. inflation (Passy, 2022).
The U.S. housing market is experiencing a temporary pause in rising interest rates, providing a brief opportunity for buyers to act quickly and secure a lower rate. It is important for brrowers to remain in close contact with their lenders and lock in your rate quickly before they rise. Home prices might stay steady for a while, but they will continue to rise eventually. As inflation drives up the prices of other expenses such as food, gas, cars, and healthcare, buyers need to carefully evaluate their finances before purchasing a home (Riquier & Witkowski, 2022).
Monthly payments could rise for buyers as interest rates climb; the average 30-year fixed-rate mortage is up .29% from January. Raw material prices have risen, causing new build prices to rise as well. Before making any major decisions, speak to your financial advisor about the potential cost increases you may face. It is more difficult than ever to purchase a home, so proceed with caution (NewsWire, 2022).
References
NewsWire. (2022, March 9). How the Russia-Ukraine War is Impacting Home Buyers and Interest Rates. NewsWire. Retrieved March 10, 2022, from https://www.newswire.com/news/credello-how-the-russia-ukraine-war-is-impacting-home-buyers-and-21652547.
Passy, J. (2022, February 27). Mortgage rates fall amid geopolitical uncertainty. How the Russia-Ukraine crisis could impact home buyers — and interest rates [web log]. Retrieved March 10, 2022, from https://www.marketwatch.com/story/mortgage-rates-fall-amid-geopolitical-uncertainty-how-the-russia-ukraine-crisis-could-hit-home-buyers-11645716754.
Riquier, A., & Witkowski, R. (2022, March 3). Mortgage Rates Drop As Ukraine Conflict Rattles Markets—Where Experts Say Rates Will Go Next [web log]. Retrieved March 10, 2022, from https://www.forbes.com/advisor/mortgages/mortgage-rates-drop-march-3/.
