2022-23 Housing Market Predictions in Tustin As we enter the second half of 2022, prospective home buyers are wondering if this is the right time to purchase their first home. Although interest rates are still relatively low, the cost of a single-family home has increased over 20% since April of 2021. Higher interest rates have also added to the cost of purchasing a house as a sharp increase was evident this past May. According to the NAR’s director of forecasting and senior economist Nadia Evangelou, we could see interest rates as high as 5.7%. These higher costs are putting increased pressure on the current housing market. In addition to this, the MBA (Mortgage Bankers Association recently reported a sharp decline in the number of applications for buying or refinancing a mortgage. This has seen the market index drop to a 22-year low. So as we enter the normally active summer home buying season, the experts are looking at what we should expect where housing prices and interest rates are concerned. With the current rate of inflation, higher housing demand and low inventory supply continues sending costs upward. With this in mind, economists have amended their median sales price appreciation 2.9% to 6.6%. Along with increasing rent costs, this has driven housing costs up. https://www.google.com/maps?cid=1333114653028728311