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Rates Heading Higher to End 2022, But 2023 is a Blank Canvas

So long 2022!  Don’t let the door hit you.  You were the worst year for mortgage rates that most of us have seen in our lifetimes in terms of the pace of the rate spike.  Sure, our friends who have more “life experience” are happy to remind us about their double digit mortgage rates in the 80s, but that was then, and everything’s relative.  Besides, the “2nd worst rate environment, ever” doesn’t really make anyone feel any better. Perhaps it’s some small consolation to think of 2022 as the bill that came due for the massive housing/mortgage market party that took place in 2021 and much of 2020.  During that time, huge milestones were achieved.  The following charts highlight the time from early 2020 through the end of 2021 (in the red boxes) to show just how exceptional it was on several levels. 1. The average home appreciated by roughly 40%, even after accounting for the modest correction in prices seen in the past few months. 2. Home sales exploded to levels well above anything else seen during the past decade 3. Rates plummeted well into new all-time lows and stayed there for much longer than any previous stint. 4. Even if we shift gears to the stock market, we find gains of almost 50%. Even after the crummy 2022, stocks are still up roughly 20% from pre-covid levels. All that to say, yes… 2022 was awful in several ways, but if we add it together with the previous two years and divide by three, some might argue it was a fair price to pay.
Source: mortgagenewsdaily.comNew feed

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