Is Now the Time to Act?

By
Real Estate Agent with Keller Williams Realty Evolution - Topsfield, MA 92593-B

This is an interesting article from KCM regarding interest rates. It is my opinion there's always some demand for Real Estate and people will buy no matter what the rates may be. The proof can be found, (let's all hop into Mr. Peabody's Way Back Machine) in the middle 1980's Real Estate market when rates went as high as 18%. I know we bought our home when rates were 13%. The rising rates DID give us the motivation to get with it...lol

With Mortgage Rates Climbing, Now’s the Time To Act

With Mortgage Rates Climbing, Now’s the Time To Act

Last week, the average 30-year fixed mortgage rate from Freddie Mac jumped from 3.22% to 3.45%. That’s the highest point it’s been in almost two years. If you’re thinking about buying a home, this news may have come as a bit of a shock. But the truth is, it wasn’t entirely unexpected. Experts have been calling for rates to rise in their 2022 projections, and the forecast is now becoming a reality. Here’s a look at the projections from Freddie Mac for this year:

  • Q1 2022: 3.4%
  • Q2 2022: 3.5%
  • Q3 2022: 3.6%
  • Q4 2022: 3.7%

As the numbers show, this jump in rates is in line with the expectations from Freddie Mac. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year. But should you be worried about rising mortgage rates? What does that really mean for you?

As rates increase even modestly, they impact your monthly mortgage payment and overall affordability. If you’re looking to buy a home, rising mortgage rates should be an incentive to act sooner rather than later.

The good news is, even though rates are climbing, they’re still worth taking advantage of. Historical data shows that today’s rate, even at 3.45%, is still well below the average for each of the last five decades (see chart below):

With Mortgage Rates Climbing, Now’s the Time To Act | Keeping Current Matters

That means you still have a great opportunity to buy now with a rate that’s better than what your loved ones may have paid in decades past. If you buy a home while rates are in the mid-3s, your monthly mortgage payment will be locked in at that rate for the life of your loan. As you can see from the chart above, a lot can change in that time frame. Buying now is a great way to protect yourself from rising costs and future rate increases while also securing your payment amount for the long term.

Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:

Mortgage rates surged in the second week of the new year. The 30-year fixed mortgage rate rose to 3.45% from 3.22% the previous week. If inflation continues to grow at the current pace, rates will move up even faster in the following months.”

Bottom Line

Mortgage rates are increasing, and they’re forecast to be even higher by the end of 2022. If you’re planning to buy this year, acting soon may be your most affordable option. Work with a trusted advisor to start the homebuying process today.

 

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (17)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, lenders have talked about rising interest rates over the last couple of years, but we never saw it, so will we see them rise this year?

Jan 24, 2022 07:04 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Joan Cox 

I really wish I was a fly on the wall in the bankers offices when they discuss these things...lol. I suspect since rates have been so low they will hit the up cycle soon

Jan 24, 2022 07:07 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

Jan 24, 2022 07:20 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Doug and thanks for sharing this great information with us here in the Rain.  Make it a great Monday!

Jan 24, 2022 07:33 AM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

Interesting Blog about the interest rates. Have a great day....See Andrew Jackson in New Orleans....

Jan 24, 2022 07:41 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Doug,

Everyone is talking about the rising rates, and if you really want to buy, you will.  That is only one of the many considerations involved.  A

Jan 24, 2022 08:07 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

When I purchased my first home the rate was around 20% Doug Dawes and I never regretted that purchase. I have to say that when interest rates hit 9% I thought I was in heaven!

Speaking of heaven, thank you for the scripture at the bottom of your post.

Jan 24, 2022 08:20 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

We purchased our first home in 1990 and our interest rate was over 10% and it was a variable loan that reset higher as soon as it was possible.  We had to buy and it was a seller's market. 

Jan 24, 2022 01:00 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Doug... I've been singing this song for several years... and now rates are rising and I think will rise more.

Jan 25, 2022 04:06 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hey Kristin Johnston - REALTOR® 

Glad you stopped by and found the article useful. How are things in WI

Jan 25, 2022 10:37 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

It was a good day Will Hamm 

I hope the info was useful to you

Jan 25, 2022 10:38 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Eric Bouler I hope they don't try and take that statue down. WHen I was in the military I serve with a couple of guys from the New Orleans & Baton Rouge areas. Good guys.

Jan 25, 2022 10:41 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I agree with Ron and Alexandra Seigel People will always buy no matter what the rates are

Jan 25, 2022 10:42 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

20%!!! Wow, Bob "RealMan" Timm 

Just refinancing when rates went down was always a thrill. We actually paid the note off in 23 years instead of 30.

You're welcome, brother

Jan 25, 2022 10:44 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Variable rates can work for ya or agin ya Raymond Henson, eXp Realty. My view point is, it's always a buyers market since buyers run the price up AND run the price down.

Jan 25, 2022 10:48 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Yep, I, too, believe the rates are going to run higher Nina Hollander, Broker Maybe even back over 5% BUT we'll see.

Jan 25, 2022 10:49 AM