2022 mortgage rates and home prices

Updated: May 28


Piggy bank with calculator

According to a recent local news report, the area of the Cincinnati housing market has sped up to a worrying degree.


The worriers are the home buyers who thought they’d have the leverage necessary to secure their own home in 2022. Sadly, many who would have bought homes will be left holding their deposits as they wish and hope for a slower turnaround.

Rising Ohio mortgage rates mean that people are scrambling for homes, and the rest of 2022 is trending to deliver more of the same.


Signs Point to Rising Mortgage Rates in 2022

Going by the national average on Realtor.com, the average 30-year fixed-rate in Cincinnati, Ohio is 4.41%. A 15-year mortgage is at 3.22% for a 5/1 ARM.


Bankrate is showing the national average to be 4.63% for a 30-year fixed mortgage rate, and 3.96% for a 15-year mortgage.


US Bank is showing a price appreciation of 4.99% for a 30-year mortgage for the entire state of Ohio. Ouch.


At any rate, it’s clear that mortgage interest rates continue to inch skyward. The question is, how high will the price growth continue to go?


This is the first time in three years mortgage rates have been this high. They have already increased by more than 2.5% since late 2020. For homeowners choosing to buy in this market, mortgage rate increases like these can end up boosting your average monthly payment by over $200.


How Much are Housing Prices in Cincinnati Increasing?

According to Zillow.com, the average value for homes in the Cincinnati area is $221,280.

With home buyers becoming more aggressive with their offers and down payments, home prices are inevitably rising. Home prices across the greater Cincinnati area have risen almost 14.2% in just the last year.




Cincinnati real estate market 2022



Is Now a Good Time to Buy a House?

With housing supply at an all-time low around the country, buyers are becoming increasingly aggressive, even with the rise in mortgage interest rates. The moment a new listing shows up on today's market, it receives multiple offers. Buyers are still operating on a fear of missing out mentality. But if these fierce bidding wars continue, buyers may soon begin looking for homes priced below their budgets.


Be Careful Waiving Those Contract Contingencies

It may be tempting to forgo the home inspection and appraisal process to save as a new home buyer but beware of the pitfalls. Your dream home could become a money trap as you try to fix up repairs that could have been managed with diligent contingencies on your mortgage contract, and at a slightly higher home buying price.


About the Cincinnati Real Estate Market

The Cincinnati real estate market is one of the fastest moving in the country. You can expect a home to remain on the market for only around five days on average before it gets snatched up.


Now might be the time to buy, even for first-home home buyers, if you can find a house that fits your budget. Cincinnati was recognized by Cincinnati.com as having the fastest growing economy in the whole Midwest. And by 2028, the city is expected to add 67,505 new jobs and the workforce is projected to increase by over 6%.


Cincinnati is also home to three pro sports teams and in 1869, it was the first city to have a professional baseball team, the Cincinnati Red Stockings, today referred to as the Cincinnati Reds. No wonder our beautiful and growing city was nicknamed the Queen City of the West.


Cincinnati is also within a single day’s drive to nearly 50% of the nation’s population. Major interstates connect Cincinnati to the metro areas of Louisville, Columbus, and Indianapolis.

Cincinnati is so attractive for homeowners that Cincinnati has been ranked as one of the three hottest real estate markets in the state of Ohio by Forbes.


Cincinnati is also one of the top 50 places to live in the U.S. based on the quality of life metrics, which include the value of living in Cincinnati, the job market, and the desire to live in the greater Cincinnati area.


Is Ohio Suffering a Low Housing Inventory Problem?

The question is, will you be able to find a house in the area? According to theceshop.com, the available housing inventory for the entire state of Ohio is 15,193. Only 1,309 of those homes are for sale in the Cincinnati area.


How Home Buyers Can Win Amid Home Price Growth

Is all hope lost if you hope to be a Cincinnati home buyer in 2022? Absolutely not! Here is some advice to help you navigate the down payment feeding frenzy that accompanies many housing listings.


Get Pre-Approved

Getting pre-approved helps you narrow down the offers you can be serious about. You can also lock in a guaranteed rate for a period of 30 to 90 days to guard against rate hikes.


Strike Quickly

Make an offer with a sizeable down payment the moment you notice a good home for sale. You might be thinking, “Do I put an offer without touring the home first?” Sometimes, a virtual online tour will have to suffice before putting your offer down. That is if you hope to beat out the many down payment offers that are sure to accompany yours.


Assume the Listing Price is Higher

The listing price you see while browsing for new homes is only a starting point. As a buyer looking to secure your dream home, make sure you are pre-approved for over the list price of whatever home is in your sights. Going $10,000 to $20,000 over the asking price might be enough to win a bidding war.


Consider an Escalation Clause

An escalation clause means you will come back with a higher offer if another home buyer makes a bid higher than yours. Use this option to secure a home against multiple offers if you can afford it.


Today's Housing Market Got You Down? Time to Build a Custom Home.

As home prices and mortgage rates rise, now can be a good time to buy. Instead of hunting for a house amid low housing inventory, why not consider building a custom home instead?

Use the Zillow mortgage rate calculator to determine how much you could pay for a 30-year or 15- year mortgage on a custom-built home. With today's available loan options, you might be able to lock in an affordable, guaranteed interest rate among the state's rising mortgage rates.


While other potential buyers are struggling over increasing buyer demand, you could be moving into a home you design yourself. Custom home buying is becoming an increasingly popular option for homebuyers in housing markets with limited supply and rising rates. The time to start is now as interest rates may not drop for the foreseeable future. Building your own home when there are few homes for sale just makes sense.


What would your dream home look like - a single-family home or multiple-story ranch-style home? Start imagining the possibilities and learn more about the process of constructing your dream home by calling Ashford Homes in Cincinnati, Ohio. First-time homebuyers are always welcome.


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