2022 Mortgage Interest Rate Expert Predictions

Wondering if it’s still a good time to buy? We’ve researched the 2022 forecasts from some of the top experts in the mortgage lending industry to help you come up with the right answer for your situation.   

Is it the right time to buy? Should you wait it out for a lower rate? What are the risks of waiting? Trying to find the right answer to these questions can be stressful. There is a lot of information floating around regarding 2022 mortgage interest rate predictions and how they will behave as the year goes on. Rates this year will be affected by many factors including federal interest rate hikes, ongoing national health concerns, inflation, and economic growth. How do you determine whether it is still a good time to buy? The answer will be dependent on where you are with your finances, but here is some data and outlook forecasts from the experts to help you decide.  

Mortgage Interest Rates as of January 31, 2022  

Since 2022 began, interest rates have been on a slow incline. Rates have crept up to around or even above 3.5% for a 30-year fixed mortgage and just under 3% for a 15-year fixed mortgage. While these increases do not seem too dramatic compared to where they were a few months ago, it is interesting to note that 30-year rates are now back slightly above pre-pandemic levels. The graphic pictured shows what rates have done from 2017 through today and is a good illustration of where the trend may be heading.  

It is hard to predict exactly when rates will rise, but the consensus is that they will continue their slow incline as the year goes on. Rates have held firm over the past couple of weeks after a few weeks of increases showing things may be steadying—for now. Read more about mortgages and get rate information about other types of loans from Business Insider.  

What are the Experts Predicting for the Rest of 2022?  

It is impossible for all the experts in the mortgage industry to have a complete consensus on exactly how much rates will go up this year. However, there is one solid prediction agreed upon by all: mortgage interest rates in 2022 will go up.  

At the end of 2021, NextAdvisor with Time.com asked 5 of the biggest experts and players in the industry to give their predictions on how much rates will rise this year. This group of executives, analysts, and chief economists produced answers for their predictions stating they thought rates would end up sitting anywhere from 3.6 up to 4% by the end of 2022. While we are not the experts in this field, you can see from the numbers above that we are already nearing that 3.6% prediction one month into the new year. 

After Seeing the Predictions, what are my Next Steps?  

If you have been thinking about buying or refinancing, do it quickly! 

While rates have increased, they are still low on the historical timeline comparison. If you have been considering using the equity in your house to buy a second home or investment property, there is still a terrific chance to take advantage of a low rate and make your money go as far as possible. If you have been teetering on the idea of building a new home over the past couple of years and it still fits your financial budget, the opportunity is still in front of you. With everyone in agreement on more increases as the year goes on for both mortgage rates and building costs, it is worth considering making the move now.  

Shop around and talk to us! 

Experts predict when the 2022 mortgage interest rate rises, the refinance boom will continue to slow. What does this mean for shopping around? As re-fi business slows for lenders, they will be hungry to earn your business as a home buyer. Just because rates are on the rise does not mean you should settle for the first quote you get. Have you been thinking about talking to a lender about your next loan? We have partnered with multiple loan experts in all our build locations to help you get started. These partners will consult with you and answer any and all of the questions you have about building a new home—reach out to us today and we will get you connected!