While the overall economy has navigated a rocky road the past two years, the housing market has been more boom than bust since mid-2019. However, three economic factors could bring about major changes in the housing market over the next few months. They include:

  • Rising interest rates
    Economists expect the Federal Reserve to raise interest rates at least three times this year. Borrowers are already seeing an increase in mortgage loan rates, and they will likely continue to rise as overall rates go up.
  • Decreasing financial security
    Many programs designed to help out-of-work Americans have expired. This may lead to increased housing supply as more homeowners consider downsizing, selling or even opting for a short sale.
  • Lagging consumer confidence
    People are more likely to make long-term purchasing decisions when they’re optimistic about the future. As the pandemic era evolved, consumer confidence fell slightly last month. These fluctuations could continue well into the coming year.

Get additional tips, a step-by-step checklist, and help with the rest of the documents you’ll see at closing by contacting CosmoLends at 216.387.1003. CosmoLends are experts in home loan products including FHA, VA, Conventional, USDA and OHFA, as well as purchase rehabilitation loans such as the FHA 203(k) and HomeStyle Renovation products. Call us and speak to one of our mortgage coaches to find out how we can help. You can also speak with a member of our loan team for a FREE consultation.