Experts Project Mortgage Rates Will Continue To Rise in 2022
Experts Project Mortgage Rates Will Continue Rise in 2022
If you're looking for a home, mortgage rates are an important factor. Even though they've hit historic lows in the last year and hovered around 3%, over recent weeks they’ve started to rise again with this past week's average at just under 4%.
A lot goes into choosing what kind of house will work best with your budget; but one thing that impacts all buyers is how much money can be spent on their dream property given current interest rate trends (low). It doesn't matter whether we like it or not - these changes could make buying harder than ever before depending on where each person falls within his/her personal economy-wide price range!
“The average 30-year fixed-rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022.”
Doug Duncan, Senior VP & Chief Economist, Fannie Mae:
“Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.”
The reality is that rates are likely to rise in the months ahead which will cost more money. And as you can see from quotes above, industry experts project this behavior and it’s not an exception either--they vary by their degree or estimation but all expect mortgage interest rates (MIR) will reach 3%.
This doesn't mean buying a home isn't worth considering; instead of waiting for prices to drop further before purchasing property, this may now seem like a better time than ever given current MIR levels.
Buying before mortgage rates rise even higher is a smart strategy for those who want to buy their first home, move up in price range or downsize as they’ve changed needs. It could be the necessary step you need towards achieving homeownership!
If you’re thinking of buying or selling over the next year, it may be wise to make your move sooner rather than later – before mortgage rates climb higher.