Mortgage interest rates having been rising steadily for the past few weeks. We get asked all the time “How high will rates go?” Another way to look at it is “How long will they stay this low?”.
The latest 30 year fixed mortgage rate via Freddie Mac showed rates at about 3.56%. This is not across the board and is just an average. You very well could have a rate much lower due to credit score, down payment and other factors. Please remember to talk to a loan officer at Beam Lending to get details on your individual situation instead of reading the billboards.
if we change our perspective and take a step back and look at rates historically. We are still in a really great place for rates. It seems crazy because we have become accustom to very very low interest rates. The last time rates were above 4% was May 2019. To see rates at 5% you would have to go back 10 years. The last time we saw rates hit 6% was in 2008.
We are expecting rates to going to close to if not hovering around 4$. This is based on data from the Mortgage Bankers Association. We still see a lack of homes for sale on the market and we still see bidding wars and a building supply chain thats slowly coming back to normal.
The main reason rates are rising is due to a policy change by the Federal Reserve. They are reducing the numbers of mortgage-backed securities that they are purchasing. If they keep pulling back we will see rising interest rates.
If you are considering a refinance or a buying a home in 2022 please make sure you get all of the facts from a Beam Lending loan officer.