Member Survey Results: Homebuying Season Outlook
Spring traditionally kicks off the homebuying season, and 2022 has been no different. After two years of 30-year fixed-rate mortgages hovering in 3.0% territory and sales prices soaring, buyers and sellers may be looking at this buying season with some trepidation. The 30-year fixed-rate mortgage jumped from 3.10% in December 2021 to 4.17% in March 2022; by May 3, it had climbed further to 5.45%. At the same time, economic uncertainty persists.
Although previously linked to COVID-19 pandemic challenges, today’s issues have morphed into more familiar, albeit still challenging, territory: home affordability and supply as well as inflation and economic growth.
What are financial leaders preparing for heading into this year’s homebuying season? We set out to survey our member institutions about the real estate climate in Arizona, California, and Nevada. According to lenders, the availability of affordable housing and increasing housing costs are hurting the housing market more than rising rates.
In the survey, our members provided additional insight into issues weighing on homebuyers and how financial services companies are anticipating demand to manifest. Members weighed in on everything from their largest concerns to what they anticipate for future home purchases, helping to provide a clearer picture of homebuying trends.