With Mortgage Rates Climbing, Now's the Time To Act

 

Last week, the average 30-year fixed mortgage rate from Freddie Mac jumped from 3.22% to 3.45%. That’s the highest point it’s been in almost two years. If you’re thinking about buying a home, this news may have come as a bit of a shock. But the truth is, it wasn’t entirely unexpected. Here’s 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 you’re 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, they’re still worth taking advantage of. Historical data shows that today’s 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, “Mortgage 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.”

Mortgage rates are increasing, and they’re forecast to be even higher by the end of 2022. If you’re planning to buy this year, acting soon may be your most affordable option. DM me to start the homebuying process today.

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