Mortgage Rates Expected to Keep Rising in 2022

Mortgage rates can determine how much you can afford to spend on a new home. The lower they are, the more house you can get for your money. 2021 saw some of the lowest mortgage rates ever recorded. They started creeping up toward the end of the year and experts expect rates to continue rising in 2022. “It will happen slowly but surely,” says David Jackson, a sales associate at ERA Justin Realty, “But you can bet on mortgage rates continuing to go up in this new year.”

Here’s what major mortgage financiers forecast for 2022:

Freddie Mac: “The average 30-year fixed-rate mortgage (FRM) is expected to be 3.5 percent in 2022.”

Fannie Mae: “Right now, we forecast mortgage rates to average 3.3% in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.”

First American: “Consensus forecasts predict mortgage rates will hit 3.7% by the end of 2022.”

The overall average of major mortgage predictions is 3.58% by the end of 2022. What does this mean if you’re thinking about making a move? Waiting will cost you more in the long run.

“When rates go up, your monthly payment goes up,” says Jennifer Darby-Metzger, Broker/Owner of ERA Justin Realty. “That’s more money out of your pocket every month for the years it takes to pay off your loan. That can really add up.”

Bottom line: if you’re thinking of buying over the next year, it may be wise to make your move sooner rather than later. David Jackson or any agent at ERA Justin Realty can help you get the most for your money, call 201-939-7500.