865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Expert Forecasts on Mortgage Rates for 2022 and 2023

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If you’ve been thinking of buying a home in East Tennessee, you may have been watching what’s happened with mortgage rates over the past year. It’s true they’ve risen dramatically, but where will they go from here, especially as the market continues to slow?

As you think about your homeownership goals and decide if now’s the time to make your move, the best place to turn to for that information is the professionals. Here’s a summary of the latest mortgage rate forecasts from housing market experts.

Experts Project Mortgage Rates Will Stabilize

While mortgage rates continue to fluctuate due to ongoing inflationary pressures and economic uncertainty, experts project they’ll start to stabilize in the months ahead. According to the latest projections, mortgage rates are expected to hover in the low to mid 5% range initially, and then potentially dip into the high 4% range by later next year (see chart below):

Expert Forecasts on Mortgage Rates | MyKCM

That could bring you some welcome relief. So far this year, mortgage rates have climbed over two percentage points due to the Federal Reserve’s response to inflation, and that’s made it more expensive to buy a home. And wondering if the rise in rates will continue is keeping some prospective buyers on the sidelines.

But now that experts say mortgage rates should stabilize, this gives you a bit more certainty about what they think the future holds, and that may help you feel more confident about your decision to buy a home.

Bottom Line

Whether you’re looking to buy your first home in East Tennessee, move up to a larger home, or even downsize, you need to know what’s happening in the East Tennessee housing market so you can make the most informed decision possible. Let’s connect to discuss your goals and determine the best plan for your move.

Have questions or want to talk about buying or selling a property in East Tennessee? Contact the Troy Stavros TEAM today at 865-999-0925. We look forward to serving you!

Luxury Southern Living Charm on 1.94 Acres in Deep West Knoxville

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Luxury Southern living charm on 1.94 acres in deep West Knoxville located at 313 Wooded Lane, Knoxville, TN 37922. Every time you come home on the quaint country road with 4 board fences (yet still minutes from Kingston Pike and the highway) and turn onto the private cul-de-sac street, you’ll look forward to pulling onto your long driveway flanked by Crepe Myrtles & Dogwoods with your private sanctuary located at the end. Whether it’s relaxing by the custom firepit overlooking your property, playing frisbee golf on your private 3-hole course or relaxing on the covered back porch with your feet up watching your favorite movie in front of the roaring fireplace, this is the home you’ve been looking for. Over 4000SF with 4 total bedrooms (3 on the main level) plus an oversized bonus room. Everything you’ve been looking for and so much more.

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Homes for sale in East Tennessee : MAY Knoxville TN Housing Market Update

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All of the data is in through the end of May. Let’s take a look at what’s happening in the East Tennessee housing market.

In today’s video we dive into the East Tennessee real estate data for the month of May 2022 to see how the East Tennessee housing market is doing compared to one year ago. We will look at the inventory of active homes for sale in East Tennessee. Homes for sale in Knoxville TN, homes for sale in Farragut TN, homes for sale in Knox County TN, homes for sale in Loudon County TN, homes for sale in Anderson County TN, homes for sale in Roane County TN, homes for sale in Blount County TN, and homes for sale in Sevier County TN. We will also at what has happened to the median sales price of homes over the last year in those areas of East Tennessee. We will discuss the real estate data and how it affects buyers and sellers in today’s East Tennessee housing market.

Here is some basic real estate data and news in regards to the East Tennessee housing market not covered in the video:

  • Mortgage rates continue to rise as financial markets anticipate U.S. monetary policy changes amid higher-than-expect inflation. The 30Y FRM finished 2021 at 3.11% but remained well above 5% throughout the month of May.
  • Knoxville’s rental market occupancy rate hovered around 98.8% in Q1 2022, more than a full percentage point above the 97.5% occupancy rate nationally. Effective rents in the Knoxville metro area (MSA) were up 19.21% year-over-year as of April 2022, significantly higher than the 15.23% rate nationally.

  • Have questions or need help in today’s crazy East Tennessee housing market? Contact the Troy Stavros team at CornerStone Realty Associates at 865-999-0925 today. We are here to serve you!

History Proves Recession Doesn’t Equal a Housing Crisis

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Some Highlights:

-It’s important to understand history proves an economic slowdown does not equal a housing crisis.

-In 4 of the last 6 recessions, home prices actually appreciated. Home prices only fell twice – minimally in the early 90s and then by nearly 20% during the housing crash in 2008.

If you have questions, let’s connect to discuss why today’s housing market is nothing like 2008.

Homes for sale in Farragut TN – 12009 Broadwood Drive, Knoxville, TN 37934

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What Are Experts Saying About The 2022 Housing Market?

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As we move into 2022, both buyers and sellers in East Tennessee are wondering, what’s next? Will there be more homes available to buy? Will East Tennessee home prices keep climbing? How high will mortgage rates go? For the answer to those questions and more, we turn to the experts. Here’s a look at what they say we can expect in 2022.

Odeta Kushi, Deputy Chief Economist, First American:

“Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”

Danielle Hale, Chief Economist, realtor.com:

“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”

George Ratiu, Manager of Economic Research, realtor.com:

“We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”

Mark Fleming, Chief Economist, First American:

“Strong demographic demand will continue to act as the wind in the housing market’s sails.”

What Does This Mean for Buyers in East Tennessee?

Hope is on the horizon for 2022. You should see your options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease. Just remember, rising rates and prices are a great motivator for you to find the home of your dreams sooner rather than later so you can buy while today’s affordability is still in your favor.

What Does This Mean for Sellers?

Make no mistake – this sellers’ market in East Tennessee will remain in 2022 as home prices are projected to continue climbing, just at a more moderate pace. Selling your house in East Tennessee while buyer demand is so high will truly put you in the driver’s seat. But don’t wait too long. With more listings projected to become available, your ideal window of opportunity to stand out from the crowd won’t last forever. Work with an agent who knows your local market and current inventory conditions to ensure you have the support you need to make an educated and informed decision about selling in the coming year.

Bottom Line

If you’re thinking of buying or selling, 2022 may be your year. Let’s connect to discuss your goals and the unique opportunities you have in today’s housing market.

Contact the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-0925 with questions or to get the process started.