Although the housing industry began 2022 very strong, there are storm clouds on the horizon. Rising mortgage interest rates and soaring home prices will have an impact on demand. In mid-April—for the first time in over a decade—mortgage rates averaged 5.0%, and the national median listing price recently hit a record $405,000.
Strong Start to 2022
Total housing starts for the first two months of the year are up 12.2% over the same period last year. Single family starts have increased 7.3% and multifamily starts registered a 23.6% expansion. The multifamily sector of housing has remained strong with very low vacancies and increasing rental rates.