The 2021 housing market seemed a tough act to follow with record home price growth and red-hot home sales perpetuated by a post-pandemic Great Migration, but according to Redfin, 2022 had some pretty remarkable moments too. As demand skyrocketed while housing supply remained historically low, home prices soared to an all-time high of $430,365 in May, and median rent prices also reached a record high of $2,053 in August.
As soaring inflation put a target on the housing market and forced the Fed to consistently raise its rates throughout the year, mortgage rates posted their fastest annual growth on record, doubling throughout 2022.
After decades of falling mortgage rates, in 2022, rates climbed to nearly 7% in both October and November, higher than any point since 2002. In fact, from October 2021 to October 2022, mortgage rates doubled in one year for the first time in history.
As mortgage rates rose alongside inflation, more buyers decided to stay put, allowing inventory to increase. Since December 2019, inventory has declined year over year until it finally rose in June 2022.
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