What’s Happening with Mortgage Rates, and Where Will They Go from Here?

Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Sam Khater, Chief Economist at Freddie Mac, explained in a press release last week, “This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power.” In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward. Here are some of their forecasts: 

Greg McBride, Chief Financial Analyst, Bankrate: “With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”  

Len Kiefer, Deputy Chief Economist, Freddie Mac: “Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.” 

Danielle Hale, Chief Economist, realtor.com: “. . . As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months
. .” 

Paying a higher price for a home and a higher mortgage rate can be a difficult pill to swallow. However, waiting will just cost you more. If you’re ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now. DM me to begin the process today.