01/19/2022
Last week, the average 30-year fixed mortgage rate from Freddie Mac jumped from 3.22% to 3.45%. Thatās the highest point itās been in almost two years. If youāre thinking about buying a home, this news may have come as a bit of a shock. But the truth is, it wasnāt entirely unexpected. Hereās a look at the projections from Freddie Mac for this year:
>>Q1 2022: 3.4%
>>Q2 2022: 3.5%
>>Q3 2022: 3.6%
>>Q4 2022: 3.7%
As the numbers show, this jump in rates is in line with the expectations from Freddie Mac. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year. But what does that really mean for you?
As rates increase even modestly, they impact your monthly mortgage payment and overall affordability. If youāre looking to buy a home, rising mortgage rates should be an incentive to act sooner rather than later. The good news is, even though rates are climbing, theyāre still worth taking advantage of. Historical data shows that todayās rate is still well below the average for each of the last five decades.
Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says, āMortgage rates surged in the second week of the new year. The 30-year fixed mortgage rate rose to 3.45% from 3.22% the previous week. If inflation continues to grow at the current pace, rates will move up even faster in the following months.ā
Mortgage rates are increasing, and theyāre forecast to be even higher by the end of 2022. If youāre planning to buy this year, acting soon may be your most affordable option. DM me to start the homebuying process today.