Mortgage rates are expected to rise in the coming year, but not by much. The average 30-year fixed-rate mortgage is forecast to reach 3.4% in 2022, up from an average of 2.9% this year, according to Freddie Mac’s latest outlook.
While rates are still historically low, the modest increase will likely price some potential buyers out of the market and could put a damper on home sales.
Rising mortgage rates will make it more difficult for cash-strapped homeowners to refinance their loans, potentially leading to more defaults and foreclosures.
The good news is that the housing market remains strong, with prices and demand expected to rise in the coming year. So, if you’re considering buying a home or investment property in 2022, it’s still a good time to do so.
Just be sure to shop around for the best mortgage rate and terms before you commit. And remember, even a slight difference in interest rates can add up to significant savings over the life of your loan.
How to Navigate the Trends?
If you’re thinking of buying a home or investment property in 2022, be sure to:
- -Shop around for the best mortgage rate and terms.
- Get pre-approved for a loan so you know how much you can afford to borrow.
- Make a large down payment if you can, as this will help keep your monthly payments down.
- Be prepared for higher mortgage rates if you’re looking to buy in a hot market.
- Keep an eye on the housing market and be ready to act quickly if prices start to cool off.
-And remember, even a slight difference in interest rates can add up to significant savings over the life of your loan, so it’s worth taking the time to shop around.
When it comes to mortgage rates, it pays to be prepared. Keep an eye on the trends and talk to a few lenders before you commit to a loan. This way, you’ll be sure to get the best rate and terms for your situation.