With Mortgage Rates Climbing, Now’s the Time To Act
The 30-year fixed mortgage rate from FHMC has jumped from 3.22% to 3.45%. The highest % in nearly 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 is unexpected, Experts have been telling us rates will climb. Now they are telling us rates have begun to climb. Here are the 2022 projections, and the forecast is now becoming a reality. Here’s a look at the projections from FHMC for this year:
Q1 2022: 3.4%
Q2 2022: 3.5%
Q3 2022: 3.6%
Q4 2022: 3.7%
You can see, the jump in rates are 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 go up even a little, it will 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. Look at the Historical Data that from the past five decades even at 3.45%, is still well below the average for each of the last five decades (see chart below):
Home Buyers still have a great opportunity to buy now with a rate that’s better than what family and friends paid decades ago. If you buy a home while rates are in the mid-3s with a 30-year loan, your monthly mortgage payment will be locked in at that rate and that payment for 30years. 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, From 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.”
TAKE AWAY
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. Contact us to start the homebuying process today.
SHOWING YOU THE WAY HOME
For over 20 years the Tom Wolf Team has been helping Fort Lauderdale Home Owners, Sell, Purchase, Invest and Lease in the Fort Lauderdale Real Estate Market.
