The Roselli Team - Your Real Estate Experts

Many consumers are wondering what will happen with home values over the next few years .   Some are concerned that the recent run-up in home prices will lead to a situation similar to the   housing crash   15 years ago. However, experts say the market is totally different today. For example, Odeta Kushi, Deputy Chief Economist at   First American,   tweeted   just last week on this issue: “. . . We do need price appreciation to slow today (it’s not sustainable over the long run) but high price growth today is supported by fundamentals- short supply, lower rates & demographic demand. And we are in a much different & safer space: better credit quality, low DTI [Debt-To-Income] & tons of equity. Hence, a crash in prices is very unlikely.” Price appreciation will slow from the double-digit levels the market has seen over the last two years. However, experts believe home values will   not   depreciate (where a home would lose value). To thi...

Based on the   Primary Mortgage Market Survey   from   Freddie Mac , the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Here’s a visual to show how mortgage rate movement throughout 2021 was steady compared to the rapid increase in mortgage rates this year: Just a few months ago,   Freddie Mac   projected   mortgage rates would average 3.6% in 2022. Earlier this month,   Fannie Mae   forecast   mortgage rates would average 3.8% in 2022. As the chart above shows, rates have already surpassed those projections. Sam Khater, Chief Economist at   Freddie Mac , explained in a   press release   last week: “This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty a...