Historically low supply continues to drive up home prices across the nation. However, home price increases are decelerating after the record-setting gains experienced over the past two years.
The number of homes sold in 2021 is one of the highest on record.
Current inflation levels imply a negative borrowing rate because mortgage rates are below 6%.
This means that borrowers are getting paid to borrow and should pay as little principle as possible until inflation recedes.
The average 30-year fixed mortgage rate remained historically low, at 3.11% at the end of December 2021. But the Fed has indicated there will be at least two rate hikes in 2022.
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