If you’re reading headlines about inflation or mortgage rates, you may see something about the recent decision from the Federal Reserve (the Fed). But what does it mean for you, the Boston housing market, and your plans to buy a home? Here’s what you need to know.

Now that the end of 2022 is within sight, you may be wondering what's going to happen in the housing market next year and what that may mean if you're thinking about buying a home. Here's a look at the latest expert insights on both mortgage rates and home prices so you can make your best move possible.

If you've been thinking of buying a home in the Boston area, you may have been watching what's happened with mortgage rates over the past year. It's true they've risen dramatically, but where will they go from here, especially as the market continues to slow?

Last week, the average 30-year fixed mortgage rate from Freddie Mac inched up to 3.1%, and experts project rates will continue rising through 2022:

Mortgage rates are one of several factors that impact how much you can afford if you're buying a home in the Boston area. When rates are low, they help you get more house for your money. Within the last year, mortgage rates have hit the lowest point ever recorded, and they've hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.14%.

Mortgage rates are hovering near record lows, and that's good news for today's Boston homebuyers. The graph below shows mortgage rates dating back to 2016 and where today falls by comparison.

In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to Freddie Mac, rates hit all-time lows 12 times this year, dipping below 3% for the first time ever while making buying a home more and more attractive as the year progressed (See graph below):