NAR: Economists, Housing Experts Predict Multiple Fed Interest Rate Hikes, Slowing Inflation & More

From: OneKey® MLS Sent: Monday, January 20, 2021 Subject: HGAR and OneKey® MLS: Taking The Lead - Dec. 20, 2021

NAR: Economists, Housing Experts Predict Multiple Fed Interest Rate Hikes, Slowing Inflation, Home Price Growth in 2022

Expect slower housing price appreciation, easing inflation and rising interest rates in 2022, according to a survey of more than 20 top U.S. economic and housing experts. Lawrence Yun, NAR chief economist and senior vice president of research, unveiled the consensus forecast on Wednesday during NAR's third annual year-end Real Estate Forecast Summit.

For 2022, the group of experts predict that annual median home prices will increase by 5.7%, inflation will rise 4% and the Federal Open Market Committee will twice increase the federal funds rate by 0.25%.

“Overall, survey participants believe we'll see the housing market and broader economy normalize next year,” Yun said. “Though forecasted to rise 4%, inflation will decelerate after hefty gains in 2021, while home price increases are also expected to ease with an annual appreciation of less than 6%. Slowing price growth will partly be the consequence of interest rate hikes by the Federal Reserve.” Read the full NAR announcement.

Source: https://www.nar.realtor/