It’s tough to say when mortgage rates will go up in 2022. They could rise slowly throughout the year or stay relatively flat. However one thing is certain: interest rates are still at historically low levels so if you’re thinking of buying a home or refinancing your mortgage now is a great time to do it.
According to Freddie Mac the average rate for a 30-year fixed-rate mortgage was 3.03% in early 2021. That’s incredibly low but it’s important to remember that rates can go up or down at any time. Just a few years ago in late 2018 rates were around 4.5%. So even a small increase could have a big impact on your monthly payment.
If you’re considering buying a home or refinancing your mortgage it’s important to stay ahead of the trends and understand where rates are headed. Here’s what you need to know about mortgage rates in 2022.
The economy is still recovering from the pandemic
The pandemic has had a major impact on the economy and it’s still unclear how quickly things will rebound. The housing market has been one of the bright spots with Sales of existing homes surged in 2020 and prices reaching new highs.
However the economic recovery is still fragile and there are a number of factors that could cause rates to rise. For example if inflation ticks up or there are more job losses that could lead to higher rates.
The Fed has said it plans to keep rates low
The Federal Reserve has said that it plans to keep rates low until the economy has recovered from the pandemic. In December 2020 the Fed announced that it would keep rates near zero at least through 2023.
This is good news for borrowers as it means rates are likely to stay low for the next few years. However it’s important to remember that the Fed can change its mind at any time so there’s always the potential for rates to rise.
Mortgage rates could rise in 2022
While there’s no guarantee that rates will go up in 2022 it’s certainly a possibility. If the economy continues to improve inflation increases or the Fed changes its policy rates could start to rise.
If you’re thinking of buying a home or refinancing your mortgage it’s important to keep an eye on rates and understand where they’re headed. If you’re comfortable with the risk of rates going up you may want to lock in a low rate now. Otherwise you may want to wait and see what happens in the coming months.
Will mortgage rates go up in 2022?
It is difficult to predict where mortgage rates will go in the future as they are influenced by a variety of factors.
However some experts believe that rates may begin to rise in 2022.
