2022’s Mortgage Rate Trends to Look Out For
The outbreak of Covid-19 in 2020 led to all-time lows in mortgage rates. Since then, the steady rise of inflation, fluctuating stock market, war in Ukraine, and other factors have pushed rates in the opposite direction. According to Bankrate Data, the average 30-year mortgage rate has gone from 3.14 percent to 5.22 percent in the past year.
While that increase may not seem significant, every fraction of a percentage point can represent thousands of dollars during the life of the loan. Those added costs may be daunting to potential home buyers.
Priority Lending LLC wants to assist you in confidently locking in a mortgage rate. As one of Tucson’s leading mortgage lending services, we know the ins and outs of mortgage rate fluctuation. Read on to better understand the mortgage rate trends to look out for in 2022.
Mortgage Rates Will Continue to Rise
Although mortgage rates are higher than in the past four decades, waiting for a decline could prove unwise. Experts do not expect the more than 2 percent rise in rates over the past year to let up anytime soon and instead project a continued incline in mortgage rates. This continued rise means that the best way to lock in a lower mortgage rate is to act as soon as possible.
High Mortgage Rates May Lower Housing Demand
The current historic highs for mortgage rates are causing a bit of a collective doubt among potential home buyers. As the rates continue to rise, there may be a steady decrease in the amount of demand for housing.
If housing demand does decline, then there could be a drop, or at least a flattening out, of mortgage rates. Experts predict that this will not occur until midway through the year but likely closer to the final months of 2022.
How to Weigh Your Mortgage Options
With the uncertainty around mortgage rate trends and the housing market, figuring out the best time to purchase a home is difficult. Finding the right mortgage lender, earning discount points, and choosing the right loan type make the decision much more complex.
For those with good credit scores and plans to remain in a home for the duration of a fixed-rate period, the continued rise of mortgage rates suggests buying a home as soon as possible. If you have the means to cover the closing costs without worrying about how you’ll pay off the loan, right now may be as good a time as ever.
On the other hand, those in a less secure financial situation may want to look to alternative options. Spending some time building credit or opting for an adjustable-rate mortgage may be wiser decisions than rushing to purchase a home.
Professional Mortgage Lending Services in Tucson
Contact your professional mortgage lending service company in Tucson for more advice on home buying and a guide to mortgage rates for the rest of the year. At Priority Lending LLC, we want to ensure you make the best decision for your future. Call Priority Lending LLC at (520) 231-1413 to learn more about mortgage rate trends today!