Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. 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%.
What does this mean if you’re thinking about making a move? Waiting until next year will cost you more in the long run. Here’s a look at what several experts project for mortgage rates going into 2022. Doug Duncan Senor VP & Chief Economist at Freddie Mac is projecting that the average 30-year fixed rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022. They forecast mortgages rates to average out at 3.3 percent in 2022, which is although slightly higher than 2020 and 2021 by historical standards. It remains extremely low and supportive of mortgage demand and affordability.
If rates rise even a half-point percentage over the next year, it will impact what you pay each month over the life of your loan – and that can really add up. So, the reality is, as prices and mortgage rates rise, it will cost more to purchase a home. Industry experts project rates will rise in the months ahead. Here’s a table that compares other expert views and gives an average of those projections:
Whether you’re thinking about buying your first home, moving up to your dream home, or downsizing because your needs have changed, purchasing before mortgage rates rise even higher will help you take advantage of today’s homebuying affordability. That could be just the game-changer you need to achieve your homeownership goals. 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.
KCM.com