What’s Ahead for Big Bear Lake Mortgage Rates?

Now that the end of 2022 is almost here, you may wonder what will happen next year in the housing market. You may also be wondering what that might mean about buying a home. Here’s a look at the latest expert insights on Big Bear Lake mortgage rates and home prices so you can make your best move possible.

Big Bear Lake Mortgage Rates Will Continue To Respond to Inflation

No doubt, mortgage rates have risen steeply this year as the market responded to high inflation. The increases we’ve seen were fast and dramatic, and the average 30-year fixed mortgage rate surpassed 7% at the end of last month. That is for a primary home. It tends to be higher for second homes and investment properties. It’s the first time they’ve risen this high in over 20 years (see graph below):

In their most recent quarterly report, Freddie Mac explains just how fast the climb in rates has been:

“Just one year ago, rates were under 3%. This means that while mortgage rates are not as high as they were in the 80s, they have more than doubled in the past year. Mortgage rates have never doubled in a year before.”

Because we’re in unprecedented territory, it’s hard to say with certainty where mortgage rates will go from here. Projecting the future of mortgage rates is far from an exact science, but experts agree that mortgage rates will continue to respond to inflation. 

If inflation stays high, mortgage rates may too.
Big Bear Lake is a different market than others because it’s a secondary home and vacation rental specialized area. Speaking to a local Realtor who can help you navigate this market is highly recommended.

Home Price Changes Will Vary by Market

As buyer demand has lessened this year in response to those higher mortgage rates, home prices have moderated in many markets too. We have seen this in the mountains as well. (We tend to lag behind primary markets. We are usually 6+months behind) In terms of the forecast for next year, expert projections are mixed. The consensus is home price appreciation will fluctuate depending on the local market, with more significant changes happening in overheated areas. As Mark Fleming, Chief Economist at First American, says:

“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”

Some areas may still see slight price growth, while others may see small price declines. It all depends on other factors in that local market, like the balance between supply and demand. This may be why experts are divided on their latest national forecasts (see graph below):

If you want to know more about Big Bear Lake home prices or the bottom line of mortgage rates, contact the Bradford King Group, experienced local realtors in Big Bear Valley, and get the latest on what experts say and what that means for our area.  (909) 683-1502