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Can We Still Achieve the American Dream?

woman-holding-a-wooden-house-in-front-of-the-sun-picture-homeownership dream

By NAR Chief Economist, Lawrence Yun

NAR Chief Economist, Lawrence Yun, presented his latest housing market forecast at the 2022 NAR Legislative Meetings’ Residential Economic Issues & Trends Forum. 

The first image below shows how the Federal Reserve’s increase in the interest rate substantially impacts the cost of owning a home. With the price of homes increasing by essentially 20% from last year, buyers need to obtain larger loans at higher interest rates.  

The second image illustrates the rising costs of other components impacted by inflation.

The explosion of home prices, coupled with the increased rate of inflation results in a 55% increase in the cost of the American Dream. 

Yun expects that demand will remain high and prices will still continue to rise this year but will begin to level off in 2023.  Learn more by reviewing the PPT slides or watch the video from NAR.

NAR interest rate impact on Mortgages Slide
NAR Inflation Components

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