Research Brief: Housing Market – 1Q 2022

Home prices climbing, despite a slowdown in buying. For the first time since 2019, the average rate for a 30-year mortgage breached 4 percent in March, then accelerated at an even faster pace, following the Fed’s first interest rate hike in over four years. Higher mortgage rates make houses less affordable, in an environment where elevated prices are already an inhibiting factor. In February, fewer existing homes sold than in any of the previous five months, as the number of existing homes available for purchase declined for the seventh straight month. The record-low supply and sturdy demand is maintaining upward pressure on values, with the median sale price reaching $382,200 in February, up 15.4 percent year-over-year. These conditions reinforce the multi-family segment’s demand surge, as the gap between mortgage and rent payments is wide, despite the recent swell in effective rents.

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