By way of comparison, the median home price of $358,125 as of late October was 13% more than a year earlier, according to Redfin’s four-week moving average—and in May it was a record 24% higher. A 3% annual increase by the end of next year would also be less than half of what forecasters at mortgage giants Fannie Mae and Freddie Mac are predicting for 2022 (7.9% and 7% respectively.) “This low price growth will likely discourage speculators from entering the market and allow more first-time buyers to have a chance at winning a home,” Daryl Fairweather, chief economist at Redfin, said in a report. Redfin expects 30-year-fixed mortgage rates to rise to around 3.6% from around 3% by the end of 2022, thanks to the pandemic subsiding and lingering inflation, she said. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.
