LendingTree recently released its projections for the state of real estate, jobs and the economy in 2022.
According to the company, potential economic upsides include home price moderation, improved supply chains, a better job market and fewer concerns over inflation. The company does not believe the housing market will crash next year.
Downsides may include increasing home prices and interest rates, which impact buyer affordability and continued economic recovery challenges due to the pandemic. Additionally, LendingTree believes personal and household savings could fall in the year to come.
- Average mortgage interest rates will rise to near 4% by the end of 2022
- Nationally, average home price growth will be less than 5%
- By 2022’s end, the unemployment rate will drop below 4%, while the labor force participation rate will rise to around 62%
- Year-over-year GDP growth will be between 3% and 4%
- The federal funds rate will increase between 0.5% and 0.75%
“The economy as a whole is currently on track to continue to bounce back from the downturn caused by the COVID-19 pandemic,” said Jacob Channel, LendingTree’s senior economic analyst in a statement. “However, due to the ever-changing nature of the pandemic and recent emergence of the Omicron variant, this economic recovery isn’t guaranteed to be a smooth one.”