By now it’s a matter of record that historically low interest rates, a lack of inventory, and record home sale prices dominated the market in the first half of 2021, but what trends do experts predict will arise in the latter half of the year? Read on to find out.
1. Rising Mortgage Rates
Many economists project that rates will rise from their historic lows — but not by much. Freddie Mac estimates that for a 30-year fixed mortgage, interest rates will average 3.4% in the fourth quarter of 2021.
2. Continued Home Appreciation
J.P. Morgan’s senior markets economist Joe Seydl and others believe home prices will continue to rise through the end of the year, but price growth will likely slow. For this reason, Seydl urges buyers to purchase a home sooner rather than later.
3. Slowly Increasing Inventory
Though prices are expected to continuing appreciating, there is also reason to believe they will moderate toward the end of the year as more and more homes come to market. George Ratiu, senior economist at Realtor.com, says, “We have seen more new listings this year compared with 2020 in 11 of the last 13 weeks. The influx of new sellers over the last couple of months has been especially helpful in slowing price gains.”
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