The low mortgage rates over the past couple of years have offered some welcome relief to homebuyers in this mega-hot housing market, but can we expect mortgage rates to stay low?
Many experts are predicting that mortgage rates will continue to rise throughout 2022, but it’s likely that we will see quite a few ups and downs along the way.
Here are some fast facts to answer some of your most burning questions about mortgage rates and the housing market this year.
Will mortgage rates continue to stay low in 2022?
Yes and no.
Mortgage rates are facing some serious challenges and are already going up. Inflation, the Federal Reserve’s plans to increase the federal rates, global instability, and various other factors are likely to continue to drive up mortgage rates.
But while mortgage rates are moving away from the record-lows that we saw in 2020 and 2021, they are still relatively low from a historical perspective. Just how long they will stay on the lower end is the question.
Is now a good time to refinance my home?
If you just bought a home recently, you’ll probably not see big advantages to refinancing right now. But, if it looks like you can save between 0.5% to 1% of your interest rate by refinancing, you might want to do this sooner rather than later.
Pro-Tip: You’ll want to consider how long you plan on staying in your home. Why? Because if you sell your house soon after refinancing, the closing costs can eliminate all your savings. You should plan on keeping your home long enough to cover the closing costs AND keep the savings from refinancing.
What will happen to the housing market in 2022?
The red-hot real estate market is showing signs of cooling. The combination of rising interest rates and high house prices will push some potential home buyers out of the market, which could result in reduced competition as the year goes on. However, because mortgage rates may continue to rise, it’s probably wise to try and lock in a rate sooner rather than later.
Overall, even with expected mortgage rate increases, conditions will still likely remain favorable for people thinking about buying a home and/or refinancing their home. Here are 6 tips and trends to help you navigate the home buying process successfully and get you into the house of your dreams this year!
What’s your best tip for participating in the real estate market in 2022?
We have two tips:
- Shop around. (For both your mortgage and your house!)
Rates can vary dramatically from lender to lender. So the best way to get a good deal as mortgage rates are rising is to let lenders compete for your business. Get a qualified or pre-qualified rate from a lender. Then, shop that rate around to other lenders and see if any of them will offer you a better one.
- Use an experienced realtor, of course!
If the 2022 housing market feels intimidating to you, make sure to find an experienced realtor to support and guide you through the process. You don’t have to do it alone, and we’re here to help you find what you’re looking for! Contact us today, and let’s get started!