As I stated yesterday, I get questions all the time of what’s going to happen in the future and what’s going on. There are reasons to be optimistic about the 2022 housing market, and I’m going to go continue those right now. As I stated yesterday there have been record sales and transaction volume in the last few years. However, everybody thinks it’s going to change. You can’t count on it always being the same for sure. It’s either going to head up or it’s going to head down. But it is consistent.
The next area is that mortgage rate hikes are going to be manageable; we believe they always go up and down. I think this week, they’re up a little bit above 3, but they’re just still hovering kind of around the 3’s. Sometimes they go under 3 to 2.9 or 2.7 or something like that, but they’re just kind of hovering around that 3 right now. And what they’re looking at is that the Federal Reserve possibly will be raising the rates up to 3.7. So they’re still saying even if they raise them, they’re just going to raise them still below 4%. I mean, it will make a difference obviously, but it won’t be too much of a difference. I remember several years ago that when I first started doing the show, which I think is seven years ago, something like that, is that, people have been telling me since that point in time that the rates are going to go up and they’re going to go up significantly. And I think at that point they were probably at about 4 and everybody was like, ‘oh
my gosh’, they’re not going to be able to stay here, but they’ve stayed here quite a while.
At this point in time, they’re still very nice and very good at that 3% or so, if you take the mortgage rate into account because the mortgage rate lowers the monthly payment and most people buy their houses, obviously based on the monthly payment.
Stay tuned in to tomorrow for Part 3