What Would 5%+ Interest Rates Do to the 2022 Real Estate Market?
Back when mortgage rates were 12%, people still bought and sold houses, which cost 70% less. If rates were 12% today, no one could buy a house! Certainly, a 5% interest rate will put downward pressure on the housing market over time, but what will it do to the market in the near term? The Good — Higher rates likely mean leveling prices in 2022. (NAR. Economists predict a milder, 4% rise in home prices in 2022 vs. the 10% to 12% rise we experienced in 2021) More owners and investors might sell now that prices are peaking, creating more housing inventory. Buyers who can still afford to be in the market can make offers on houses without quite so many competing offers, and they’ll have more choices. Sellers are not likely to lose much (if any) value, though they won’t continue to see sharp rises. The Bad — Higher rates mean the pool of buyers will shift around. Sellers could and most probably will get fewer offers. Buyers will ask sellers to make more repairs. Sellers who want to cash out at the peak may be running out of time. The Ugly — Higher rates mean many buyers will scale back on the home price they could afford when rates were lower. They may need to drop into a lower price point, which could alter their location or home style plans, or they’ll need to come up with a higher down payment. The Next Wave? Real estate markets are like an uneven, undulating wave, going up and down like a mad roller coaster. The last up-swell has been meteoric. But that doesn’t mean the next down turn will be just as steep. It is more likely to be a slow glide that levels off for the foreseeable future (barring unforeseen circumstances).
Do 40 Year Mortgages Make Any Sense? Mortgage amortization (pay-back) periods are getting longer. Typical mortgage pay-back periods are between 15 and 30 years. But in response to higher real estate prices, lenders have been providing longer mortgages, in some cases up to 40 years. Should you get the longest mortgage pay-back period possible? Have a look at the chart, which shows an example of what happens with different mortgage lengths. The figures are based on a price of $408,100 with 20% down, for a loan of $326,480 (data from MarketWatch.com). PROS—If you get a longer mortgage, you may qualify to buy a higher-priced home, which makes sense if you absolutely must purchase at a higher price. It also makes a bit more sense if you plan to keep the home at least 10 years. Also, with rates rising, the top interest rate for a longer mortgage today may be lower than the rate for a shorter mortgage in the future (but that’s not a certainty). CONS—Unfortunately, you’ll pay more for that home, because you’ll pay a higher interest rate for the “privilege” of the longer loan. You’ll be paying for many years longer before you get to be “free and clear.” And if you want to sell within 10 years (a typical period of ownership for adults), you’ll have less equity, and may even be upside down if home prices fall significantly. What can you do instead of getting a longer mortgage? Buy a cheaper property, save a higher down payment, buy an investment property in a different location, or co-borrow/co-buy with someone (a parent?) so you qualify for a shorter mortgage. Call me if you have real estate questions.
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www.BREMove.com
May. 2022 • Issue No. 37
Movie Releases
Featured Recipe
Lemon Carrots with Harissa Active: 35 min • Inactive: 15 min • Total time: 50 min
Ingredients • • • • • • •
Doctor Strange in the Multiverse of Madness
AROUND THE WORLD IN 80 DAYS
Dr. Stephen Strange casts a forbidden spell that opens the doorway to the
Passepartout is a young marmoset who always dreamt of becoming an explorer.
GOOD MOURNING
Top Gun Maverick
When he wakes up to an implied break up text from the love of his life, his world is turned upside down. And the timing couldn’t be wors.
After more than thirty years of service as one of the Navy’s top aviators, Pete Mitchell is where he belongs, pushing the envelope as a courageous test pilot.
In Theaters May 6tt, 2022.
2 tablespoons canola oil, plus more for brushing 2 tablespoons grapeseed oil 2 1/2 pounds carrots, trimmed and halved lengthwise 1 teaspoon flaky sea salt, plus more for sprinkling 1/2 cup Harissa Paste 1 tablespoons fresh lemon juice 1 tablespoons thinly sliced fresh chives
In Theaters May 13th, 2022.
Directions
1. Preheat oven to 375°F. Combine canola oil and grapeseed oil in a small bowl; stir together until blended. Combine oils, carrots, and 1 teaspoon flaky sea salt in a large bowl; toss to coat evenly. Transfer carrots to a baking sheet, and roast at 375°F until crisp-tender, 10 to 15 minutes. Remove carrots from oven, and cool 10 minutes 2. Preheat a grill to medium-high (about 450°F) or heat a grill pan over medium-high, and brush grate with oil. Grill carrots, uncovered, turning occasionally, until charred on all sides and just tender, 8 to 10 minutes. 3. Transfer carrots to a serving plate. Drizzle the carrots with Harissa Paste and lemon juice. Sprinkle with chives and sea salt.
In Theaters May 20th, 2022.
In Theaters May 27th, 2022.
Things To Do Fire Hero Chili Cook-Off
Day Out With Thomas
You vote on who will be the 2022 Fire Hero Chili Champion. The day events include chili tasting stations, a silent auction, live music, and more!
Get ready for a full day of fun! Thomas the Tank Engine™ is rolling into town for a day of BIG dreams and even BIGGER smiles.
May 1, 2022 1028 S Conkling Street, Baltimore, MD
USNA Goatapalooza
Paint The Town
Bill the Goat is not just the mascot of the USNA’, he is also a local celebrity and cherished icon. Goatapalooza is your chance for the whole family to meet him!
Join the party at the Westin Annapolis on May 14th for our premier fundraising event as we celebrate 29 years of providing leadership and advocacy for the local arts
Walk for the Animals
Super Science Sleepover
Dog Mom? Pet Mom? Human Mom? Come spend Mother’s day at the Walk for the Animals. Pets, Food, Fun, Music, and more!
It’s time to jump in your ship and travel to a Science Center not so far, far away for a night of fun with some of your favorite characters.
May 1, 2022 52 King George Street, Annapolis, MD
May 8, 2022 600 Quiet Water Park, Annapolis, MD
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May 13-22, 2022 901 W. Pratt Street, Baltimore, MD
May 14, 2022 100 Westgate Cirle, Annapolis, MD
May 14, 2022 601 Light Street, Baltimore, MD
May. 2022 •
Sports
Boston Red Sox at Baltimore Orioles
Baltimore Orioles at Detroit Tigers
May 1st
May 13th, 14th, &15th
Minnesota Twins s at Baltimore Orioles
New York Yankees at Baltimore Orioles
May 2nd, 3rd, 4th, & 5th
May 16th, 17, 18th, & 19th
Kansas City Royals at Baltimore Orioles
Baltimore Orioles at New York Yankees
May 6th, 7th, & 8th
May 23rd, 24, & 25th
Baltimore Orioles at St. Louis Cardinals
Baltimore Orioles at Boston Red Sox
May 10th, 11th, & 12th
Houston Dynamo at D.C. United May 7h
New York Red Bulls at D.C. United May 10th
May 27th, 28th, 29th, & 30th
D.C. United at Inter Miami May 14th
New York City at D.C. United May 18th
Washington Nationals at Colorodo Rockies
Washington Nationals at Miami Marlins May 16th, 17, & 18th
May 3rd, 4th, & 5th
Washington Nationals at Los Angeles Angles Washington Nationals at Milwaukee Brewers May 6th, 7th, & 8th
May 20th, 21st, & 22nd
New York Mets at Washington Nationals
Los Angeles Dodgers at Washington Nationals
May 10th, 11th, & 12th
May 23rd, 24th, & 25th
Houston Astros at Washington Nationals
Colorodo Rockies at Washington Nationals
May 13th, 14, & 15th
Toronto at D.C. United May 21st
D.C. United at New York Red Bulls May 28th
May 26th, 27th, & 28th
Trivia Challenge
Beer Tasting Sunset Sails May 17th, 2022 80 Compromise Street, Annapolis, MD
We feel that everyone should be able to enjoy great, craft beer while sailing on the Chesapeake Bay. Get educated in a very casual manner about beer.
The 147th Preakness
May 21, 2022 5201 Park Heights Avenue, Baltimore, MD
The coveted Middle Jewel of the Triple Crown, home to legendary performances from renowned horses and world-famous jockeys.
May Trivia Challenge Question What famous race takes place on the first Saturday of May every year?
2nd Annual World Turtle Day May 22, 2022 6908 Belair Road, Baltimore, MD
Turtles have existed on Earth since the time of the dinosaurs, but unlike them, they have survived. Join us for our second annual celebration of all things turtle.
Issue No. 37
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Monthly Trivia Challenge Want to Win a $100.00 Amazon Gift Card?
It’s easy to play! Answer the Trivia Challenge question on page 3. Each month, all correct entries have a chance of winning the gift card. It’s time all that seemingly random knowledge you’ve stored up is not so useless after all!
Want to Enter?
Email ClientCare@BREMove.com with the word “TRIVIA CHALLENGE” in the subject line. Good luck! Last Month’s Question: When was the first Earth Day? Last Month’s Answer: 1970
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Congratulations to Last Month’s Winner! Lisa Robertson
www.BREMove.com
May. 2022 • Issue No. 37
