The Latest Predictions For Interest Rates In 2022

If you’re planning to buy a home in the next few years, your interest rate is probably one of the first things on your mind. With rates still hovering at historically low levels, it can be tempting to think this trend will continue indefinitely — but experts warn that interest rates are expected to increase in 2022, potentially making it more expensive to finance the purchase of your dream home. Some even predict that the mortgage interest rate will rise by as much as 5% in just 2 years, depending on the nation’s economic climate at that time.

The Latest Predictions For Interest Rates In 2022

If you’re planning to buy a home in the next few years, your interest rate is probably one of the first things on your mind. With rates still hovering at historically low levels, it can be tempting to think this trend will continue indefinitely — but experts warn that interest rates are expected to increase in 2022, potentially making it more expensive to finance the purchase of your dream home. Some even predict that the mortgage interest rate will rise by as much as 5% in just 2 years, depending on the nation’s economic climate at that time.

How Rising Interest Rates Affect Home Buying

Homebuyers have been in a perfect situation for the past few years: the economy has been booming, interest rates are still relatively low as compared to past rates, and wage growth has slowly but surely made its way back into the economy. While interest rates will continue to rise, taking advantage of the current rates is still a good idea. Interest rates are rising so gradually that it’s actually advantageous to purchase a home now before prices rise further.

Are Longer-Term Fixed-Rate Mortgages Good Or Bad?

Longer-term mortgages (also known as fixed-rate mortgages) are good for some homeowners but bad for others. What’s right for you? If your mortgage is due to reset in five years or less, an adjustable-rate mortgage may be a better choice because it can help you save on interest over time. On a 5/1 ARM, if market rates fall when your loan resets, your payment will go down; if rates rise during that time period, your payment will increase.

One of the biggest advantages of getting a fixed-rate mortgage is security. If you’re planning on staying in your home for years, knowing that your monthly payment will remain unchanged can be a huge benefit. There are ways to save money with an adjustable-rate mortgage, but there’s nothing more secure than a fixed-rate loan.

Take Advantage Of Today's Low-Interest Rates Before They Rise

Buying a home today is cheaper than it has ever been. Interest rates are at historic lows and buyers are qualifying for more than ever before. Rates will eventually rise, but now is the time to take advantage of these low-interest rates before they do. You’ll be glad you did once they do. Sooner or later, interest rates will start to rise; so if you want to buy a home, it makes sense to buy one as soon as possible.

 The Fed is anticipating a total of six rate hikes in 2022. So, if you want to buy a home and make an offer before interest rates rise further, it’s now or never. Current mortgage rates are still extremely low, which makes taking advantage of them more worthwhile than ever before. Take advantage of these historically low-interest rates to buy your dream home today.

Homebuyers have been in a perfect situation for the past few years: the economy has been booming, interest rates are still relatively low as compared to past rates, and wage growth has slowly but surely made its way back into the economy. While interest rates will continue to rise, taking advantage of the current rates is still a good idea. Interest rates are rising so gradually that it’s actually advantageous to purchase a home now before prices rise further.

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