With Mortgage Rates Climbing Now Is The Time To Act

Dated: January 26 2022

Views: 32

With Mortgage Rates Climbing, Now’s the Time To Act | MyKCM

             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:

  • Q1 2022: 3.4%

  • Q2 2022: 3.5%

  • Q3 2022: 3.6%

  • Q4 2022: 3.7%

             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.

             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 (see chart below):

With Mortgage Rates Climbing, Now’s the Time To Act | MyKCM

              That 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.”

Bottom Line

              Mortgage 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.

Blog author image

Sean Henzler

Sean Henzler is a 2nd generation, Island Native with a true love for the Lowcountry. In 2007 he became a property manager for a vacation rental company, acquiring a wealth of real estate knowledge an....

Latest Blog Posts

Why Inflation Should Not Stop You From Buying A Home In 2022

         If you’re following along with the news today, you’re probably hearing a lot about record-breaking home prices, rising consumer costs, supply chain constraints,

Read More

Achieving The Dream Of Homeownership

                Homeownership has long been considered the American Dream, and it’s one every American should feel confident and powerful pursuing. But

Read More

With Mortgage Rates Climbing Now Is 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

Read More

The Next Generation Of Homebuyers Is Here

                  Many members of Generation Z (Gen Z) are aging into adulthood and deciding whether to rent or buy a home. If you find

Read More