We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies.More info
Leatherman HomesLeatherman Homes
    Ask Us Anything
    Follow us

    Who We Are

    • Meet Our Team
    • Read Our Blog
    • See Our Reviews

    Who We Serve

    • Explore Our Services
    • Buy With Us
    • Sell With Us
    • Search for Homes
    • See Our Marketing Strategy

    Leatherman Homes

    25 S Village Avenue, Rockville Centre, NY 11570

    • (516) 984-1815
    • [email protected]

    Questions from a Seller: What Do Higher Mortgage Rates in 2022 Mean for Sellers?

    After historic lows, mortgage rates are back on the rise in the United States and Canada. So, what does this mean for...

    • Kevin Leatherman
    • November 1st, 2022
    • 4 min read
    Featured Image

    After historic lows, mortgage rates are back on the rise in the United States and Canada. So, what does this mean for sellers? Is the era of the red hot seller’s market coming to an end? If you’re asking the question, “should I sell my home now?” You’re in the right place. Keep reading to learn what these rising mortgage rates mean for home sellers in 2022.

    It Means Changes to What Your Home Sells For

    If you’re eager to make the most out of all of the repairs and upgrades you’ve put into your house, your window to do so might be becoming more narrow — but it’s not here quite yet! The good news is that mortgage rates don’t skyrocket overnight. Instead, they increase gradually. Right now, the mortgage rates are 3.1% in the U.S. and 3.9% in Canada. You can expect those rates to rise to 4% and above by the end of 2022. These rate jumps are expected to push the median price of homes down about 2.5% by next year — quite the opposite of the 19.5% jump we’ve been experiencing over the past year.

    So, this means if you wait to sell your home until closer to the end of the year, you won’t be able to list it for quite as much.

    It Means the Market May Become Less Competitive

    As interest rates rise, the market is slated to become less competitive by the end of the year to early 2023. This means that you won’t be seeing as many above-asking price offers, all-cash offers, and bidding wars. Less competition will allow the market to settle from the catastrophic and chaotic process that it’s now experiencing. But, less competition isn’t all bad news. It means you’ll be able to find a new home a lot easier — and cheaper — than current conditions are allowing for, making your move overall less stressful.

    It Means Slower Price Growth

    It’s no secret that home price growth has hit astronomical levels over the past two years. This surge was driven by historically low mortgage rates and the pandemic-spurred change in buyer mindset — buyers suddenly wanted more space and different scenery. Now that these two trends will likely be history, price growth will start to taper off. Freddie Mac is forecasting that home prices will rise only 2% for most of 2022. So, as prices grow more slowly, you likely won’t be able to list your home for an outlandish price (and get a full-price offer) anymore.  

    Expect a Spring in Demand

    With spring just around the corner and rates still relatively low, homeowners should expect a busy spring selling season. Spring is usually one of the busiest times to sell a home, and you can expect the spring 2022 selling season to look more normal than the past two years. This spring's number of homes for sale is expected to rise compared to last year as the market attempts to recalibrate and balance itself after a wild pandemic-induced ride. 

    If you’re looking to sell your home this spring, now is the time to get started on any maintenance or upgrades because supply chain issues and labor shortages — and now potentially the conflict in Ukraine — means that it’s taking longer than ever for building materials, appliances, and furniture to be made, shipped, and delivered. So do yourself a favor and get out ahead of it, so you’re not cramming last minute to get your home sale-ready.

    We Can Help

    If you’d like to learn more about selling your home or have any mortgage rate-related questions, please feel free to reach out to us. We are happy to assist you in any way we can.

    Click Here →

    Author Photo
    About the author

    Kevin Leatherman

    (516) 984-1815
    • facebook
    • X
    • instagram
    • linkedin
    • youtube
    • pinterest
    I was raised in Commack, attended grades K-12 and graduated from Hofstra University with a Bachelor of Business Administration Degree in Banking & Finance. While having a successful career selling & trading Foreign Exchange for top Wall Street firms, I pursued my true passion by attending a real estate broker licensing course at New York University. Upon receiving my real estate broker’s license I opened my real estate agency. Shortly afterward, business flourished, and I was able to resign from my full-time position on Wall Street.

    Similar posts like this

    How to Buy a Home in 2023

    Two major challenges in the real estate market for buyers right now are high mortgage rates and low inventory. Let’s take...

    Read more

    How to Find a Home in Your Preferred School District

    If you have kids who are school-aged or about to be, you’re probably thinking about your school district. If there’s a particular...

    Read more

    7 Must-Read Real Estate Tips for Expecting Parents

    Being an expecting parent can be a wonderful and exciting time, but it can also be stressful. There are so many details to...

    Read more
    Leatherman Homes

    Here to provide exceptional service.

    Leatherman Homes

    25 S Village Avenue, Rockville Centre, NY 11570

    Leatherman Homes

    25 S Village Avenue, Rockville Centre, NY 11570

    (516) 984-1815
    [email protected]
    • Our Services
    • Buy With Us
    • Sell With Us
    • Meet Our Team
    • Our Reviews
    • Our Blog
    • Contact Us
    • Our Marketing
    • Search for Homes
    • Get My Home's Value
    • Mortgage Calculator
    • Sold Gallery
    • NYS Housing Discrimination Disclosure Notice
    • NYS Standard Operating Procedures
    Join Our Email List:

    *We respect your inbox. We only send interesting and relevant emails.

    Leatherman Homes © 2025

    Privacy Policy
    Powered by