week, the average 30-year fixed mortgage rate from Freddie Macjumped 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
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 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.
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 (see chart below):
means you still have a great opportunity to buy now with a rate that's better
than what your loved ones may have paid in decades past. If you buy a home
while rates are in the mid-3s, 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 in that time frame. Buying now is a great way to protect
yourself from rising costs and
future rate increases while also securing your payment amount for the long
term. 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.
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. Let's connect to start the homebuying process today. Contact
me at (904) 274-1692 to get started.