The above chart is from Redfin showing appreciation is 18% YoY. Meanwhile the Fed is stating that the inflation is temporary and due merely to pent up demand from the lockdown. However, the Fed's own data shows that the inflation rate is within historic norms of the last 2 decades.
So if the inflation was due to the rebound effect from the lockdowns, wouldn't we also expect to see that reflected in more common goods? But we don't. Now most of us don't trust the Fed's own inflation numbers, but regardless in using their own inflation numbers it seems to disagree with their point of view.
So what is going on with the housing market? I think we are seeing that commodities, (the best hedge against inflation) including Real Estate, are getting grabbed up quickly. This is something you would expect in an inflationary environment.
I personally lived through the inflation of the 70's and from my point of view, we seem to be heading back into those kind of rates again. The question is how long will it take to happen? Hard to say as the Fed is buying bonds to keep their prices high and rates low artificially to help fuel the Stock Market, as people buy on Margin Credit and Real Estate. However, it is obvious that the Fed has run out of arrows in their quiver. Once they can no longer buy, rates will shoot up.
My recommendation, refi as quick as you can and buy a home now before the home you want grows out of your reach.