Isaiah 32:18 reads, “My people will abide in a peaceful habitation, in secure dwellings, and in quiet resting places.” That verse describes what we’re all looking for when buying a home. Lately, rising home values have made that difficult. Will that continue in 2022? Mortgage expert Dale Vermillion joins Rob West to help answer that question. Dale Vermillion is the author of "Navigating the Mortgage Maze: The Simple Truth about Financing Your Home." • Home values have already climbed 22% since the onset of the COVID pandemic. • FORECASTS PREDICT CONTINUED RISE IN HOME PRICES • Multiple recent forecasts predict that the sharp upward trend in home values will continue in 2022. Zillow projected home values will rise 13.6% over the next 12 months. Meanwhile, Goldman Sachs said U.S. home prices will climb 16% by the end of 2022. • However, another forecast from CoreLogic, a company that crunches property data, says that home prices will only rise 2.2% over the next year. • Why such a big difference in those forecasts? • Like other economic models, these forecasts depend on what data you put into them. Mortgage rates are tied to home values, and of course, inflation affects interest rates. • With inflation on the rise, the Federal Reserve is more likely to raise interest rates, which would drive up the average 30-year fixed mortgage rate. That would put negative pressure on the housing market. It’s likely that the lower CoreLogic projection for home values took more inflation data into consideration. • WHAT DOES ALL OF THIS MEAN FOR HOMEBUYERS? • Even if the CoreLogic forecast proves accurate, rising mortgage rates could ensure that buying a home is likely to be more, not less, expensive in 2022. • But that doesn’t mean everyone should rush out and buy a home before prices rise further. Make sure the timing is right for YOU based on your financial situation. Don’t be afraid to rent until you are in a solid position to buy a house. • Learn more about Dale Vermillion at DaleVermillion.com. On this program, Rob also answers listener questions: • Would it be best to use the proceeds from a property sale to invest in a new rental property or pay off a mortgage? RESOURCES MENTIONED DURING THIS PROGRAM • Navigating the Mortgage Maze: The Simple Truth About Financing Your Home. Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected] Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.