Sunday, 23 October 2022

2022 Mortgage Rate Trends

The everchanging real estate market in the United States is undergoing a recalibration. Coming off the roller coaster past years of inventory famine, and buyer battles, it’s time for things to level off. Does all this change have you wondering about 2022 mortgage rate trends in the U.S.? Look no further for our deep dive into the current trends, and if now is a good time for you to buy a new home-sweet-home.

2022 Mortgage Rate Trends


Real estate market

The rebalancing going on across the U.S. is showing a shift no matter if you’re a homeowner, a buyer, or a seller. In recent years there has been a serious inventory shortage, which drove home prices up. Combine this with historic lows in interest rates and it was the perfect storm for a wild ride in the real estate world.

As interest rates climb, it has started to cool off the number of buyers in the pool. This, mixed with an increase in sellers putting their homes on the market and we have our current state which is a rebalancing.


A recent dip?

You may have heard that mortgage rates are taking a dip. This is true with recession concerns on our heels, but the rates are still at an elevated level when comparing them to the historic lows we saw during the 2020 and 2021 pandemics.


Increased rates

Increasing rates are driven by the market, meaning stocks, inflation, spending habits, and other economic factors. Inflation is the core reason why we are seeing increased mortgage interest rates. Experts are anticipating the rates will continue to rise, to somewhere around 7 percent.


Compared to the recent rates of 2 to 4 percent, seven seems extraordinarily high. However, in a historic context, these rates are currently still considered affordable. There were moments in history when rates dipping below 10 percent was an exciting milestone.


Do you want to buy it?

If you’re in a position to buy a home, know that these interest rates should not scare you out of the real estate market. A common phrase in the real estate world is to, “marry the house, date the rate.” This means, finding your dream home, and going for it, despite your interest rate. An interest rate can change easily through refinancing.


Thinking of selling?

Don’t let rising interest rates stop you from listing your home if you’re in a position to do so. Feel encouraged knowing that there will always be buyers wanting to purchase your property. Just because the number of buyers may be overall less, the quality of buyers is probably better considering if they are looking for a home with increased rates, they are likely more serious about purchasing.


Eb and flow

At the end of the day, real estate mortgage rates are always going to eb and flow. They will rise and fall as the only constant. Knowing this should give you peace of mind that no matter if you’re trying to sell or buy in 2022, your rate can be adjusted if needed. There will always be buyers and sellers in any market. You should make your next big real estate sale or purchase with your needs in mind, rather than being overly concerned with interest rates.

 

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