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Welcome to the Know the Difference Minute 

The Case-Schiller National Home Price Index is out for 2021—and it’s just about what you’d think: great for some, frustrating for others.  On the plus side, average home prices across major metropolitan areas rose nearly 19% for the year, the highest since the index began in 1987. And overall, home sales hit a 15-year high in 2021.  This is a byproduct of the Covid housing boom with record low mortgage rates and the pivot to working and attending school at home.   

On the downside, the shortage of homes for sale continues to get worse, setting a record in January.  Between supply, demand, investor purchases, and cash buyers, many 1st time buyers can’t compete. 
Higher mortgage rates have the potential to cool the market. On Thursday, Freddie Mac reported the highest 30-year fixed rate since May of 2019. 

I’m Deanne Phillips from Annex Wealth Management.  That is your Know the Difference Minute.