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. Experts have been calling for rates to rise in their 2022 projections, and the forecast is now becoming a reality. Here’s a look at the projections from Freddie Mac for this year:
1st Quarter: 3.4%
2nd Quarter: 3.5%
3rd Quarter: 3.6%
4th Quarter: 3.7%
Should you be worried about rising mortgage rates? 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, even at 3.45%, is still well below the average for each of the last five decades.
That means you still have a fantastic opportunity to buy now at a rate that’s better than what your family and friends may have paid in decades past. If you buy a home while rates are around 3.5%, your monthly mortgage payment will be locked in at that rate for the life of your loan. As you can see from the chart above, a lot can change over a period. Buying now is a terrific way to protect yourself from rising costs and future rate increases while also securing your payment amount for the long term.
Mortgage rates are increasing, and they’re forecasted 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. Work with me to start the homebuying process today.