5 economists and real estate professionals on what mortgage rates will look like for 2022
Mortgage rates have reached their highest level in 13 years, according to the National Bankrate survey from lenders. And many pros say the upward climb has perhaps not reached its peak. In fact, we asked five pros tell us: What will happen to it in mortgage rates this year and what does this mean for home buyers? (Check here for the lowest mortgage rates you can qualify now.)
Mortgage Rate Predictions
On May 16, the Mortgage Bankers Association predicted that rates on 30-year clôtureraient 2022-5%, and in April, Freddie Mac, provided that the fixed rate mortgage over 30 years would average 4.6% for the year 2022. the increase rates, but not sharply, “says Holden Lewis, real estate and mortgage expert at Nerdwallet. And Steve Reich, director of operations at Finance of America Mortgage, predicted: “It is possible that soon we saw another increase – only time will tell.
For some pros, rates of 6% are a possibility. “Rates have already increased significantly since the start of the year, and they are on track to climb even higher by 2023. Although not guaranteed, rates of 6% or more are possible says LendingTree’s senior economic analyst, Jacob Channel. George Ratiu, senior economist at Realtor.com, adds, “If the pace of rate increases were to maintain momentum…we can expect to see mortgage rates for a 30-year loan cross 6%.
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But others say rates may soon plateau. “It’s even possible that rates will peak over the next few weeks or months and then stay flat or even come back down from there.” A mid-April forecast from the Mortgage Bankers Association predicted a 33% increase in mortgage purchase requests over the next 3 months,” said Robert Heck, Vice President of Mortgages at Morty.
What does this mean for aspiring home buyers?
“Rapidly rising mortgage rates are a blow to homebuyers who were already dealing with record growth in home values. Historically low mortgage rates had been a lifeline during the pandemic, keeping monthly payments in check even when prices hit new highs,” says Nicole Bachaud, economist at Zillow.
For those considering a mortgage in the weeks and months ahead, Heck says it may be a good idea to assess and track your eligible mortgage options with a view to locking in a loan option. But remember, don’t let this high-pressure housing market lead you to a home that could stretch you financially.