MORTGAGE RATES

In December, mortgage rates remain stable.  The 30-year fixed mortgage rate moved lower from 3.10% to 3.11% during the week ending 12/9/2021. It seems that Investors are optimistic that the omicron variant of Covid-19 will not have a significant impact on markets.  The Fed’s reaction to inflation pressures is more likely to affect mortgage rates. A faster tapering process would most likely harm mortgage rates for home buyers.

Home prices continue to as the housing supply remains lower than the demand for housing. Homebuyers are having trouble finding homes to purchase that they can afford. Due to lower inventory and weaker affordability, about half a million fewer homes are available for sale that a household earning $100,000 can currently afford to buy compared to 2 years ago. Since the housing supply is not expected to rise soon, more people may rent.  If they chose to rent single-family homes, this could have been pressure applied to the inventory of homes as fewer homes would be available.

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