Source: Market Watch —
We asked home and mortgage experts and economists what they predict will happen in the housing market this spring and further into 2022. Here’s what they told us. (You can find the lowest mortgage rates you might qualify for here.)
Prediction 1: There may be less competition for higher priced homes
Mortgage rates are on the rise: Mortgage rates on a 30-year fixed-rate mortgage hit 5% this month, the first time that’s happened since 2011, and pros say they may keep going up. “Most buyers base their price range on how much they can afford every month and mortgage payments go up for a given loan size as rates increase. As a result, the increase in mortgage rates means that homebuyers will have to adjust their expectations, and begin shopping in lower price ranges. We might see less competition for higher priced homes and more competition for lower-priced homes,” says Holden Lewis, home and mortgage expert at Nerdwallet says.