Mortgage Interest Rates Forecast for 2022

Experts forecast that fixed-mortgage rates for the 30-year are expected to vary between 4.8% and 5.5% by the close of 2022.

Generally, while U.S. Treasury Bond yields directly impact mortgage rates, they are further indirectly influenced by rising inflation and the Federal Reserve’s monetary policy. So when inflation rises, a more aggressive monetary policy is applied by the Fed, which will perpetually lead to a higher mortgage rate.

“The pressure to contain inflation will grow and the Fed will have to raise its fed funds rate eight to 10 times with quarter-point hikes this year,” says Lawrence Yun, Chief Economist and Senior Vice President of research at the National Association of Realtors (NAR). “Additionally, the Fed will undo the quantitative easing steadily, which will put upward pressure on long-term mortgage rates.”

What does That Forecast Mean for You?

Lending is now becoming increasingly costlier for borrowers and homeowners alike as the mortgage rate continues to increase. During the first quarter of this year, the mortgage rates took a leap of 1.5 percentage points, the biggest leap in over 28 years.

For borrowers, increasing interest rates mean increasing monthly payments. For example, with a 5.1% interest rate on a home valued at $400,000, the borrower would need to pay a monthly mortgage amount of about $2,170, excluding insurance, other loan costs or taxes. If the interest rates were to increase to around 6.0%, then the monthly mortgage payment would increase to about $2,400.

This means that the time for homeowners who are looking to lock in on a lower interest rate through refinancing is now beginning to slowly run out. So, without wasting any time, call and talk to an experienced Lend Me Money affiliate lender who will be happy to discuss your specific position and help you to determine what your best option is.

Mortgage Rate Current Trends

There has been a steady ticking up in the mortgage rates since the start of March 2022.

Loan TermInterest RateAPRMonthly Payment per $100,000
30-Year Fixed6.11%6.12%$607
15-Year Fixed5.39%5.42%$811
30-Year Jumbo5.97%5.98%$598
5/1 ARM4.20%5.68%$489

How Mortgage Rates are Determined

Mortgage rates are generally determined by various economic factors, which includes U.S. Treasury Bonds yield, the economy, borrower demand and the monetary policy of the Federal Reserve.

Although the wider economy is negligibly impacted by the borrowers, their personal financial standing can play a significant role in getting them the best available rates. Typically, borrowers that have higher FICO scores, along with a lower debt-to-income (DTI) ratio, and the ability to raise a bigger down payment amount will succeed in locking in far lower interest rates. So, call right now and talk to an experienced Lend Me Money affiliate lender who will be happy to discuss your specific position and also help you in getting the best available rates.

Meet One of Our Leading Mortgage Lenders

Although, there are a number of ways in which you can search for the mortgage lender who suits your specific standing and needs, nothing beats Lend Me Money affiliate lenders for having the unique experience and expertise in offering you the best value for your money. To help you along the way, here is a list of some of our top-class mortgage lenders: Our Leading Mortgage Lenders.

Comparing Current Mortgage Rates

Compared to borrowers who jump at the first lender, smart borrowers who pause to compare their options, have a greater tendency to get much lower rates. To get you the most accurate and suitable quote, Lend Me Money affiliate lenders will offer you a wide range of excellent options to compare and select between.

The advantage of selecting one of our affiliate lenders is that you can avoid doing a lot of tedious work yourself, while still benefiting from their extensive knowledge-base and industry experience. For one, Lend Me Money will match you up with one of their affiliate lenders who is best suited to your mortgage refinancing needs. That includes anything ranging from a lower down payment refinancing to a jumbo mortgage package. However, depending on the offer of our affiliate lenders, you may need to pay them a small fee. The submission of your mortgage application is a straightforward, hassle-free process. Most of our affiliate lenders accept online applications, thereby, eliminating the need for you to travel to their branch location or local office. Likewise, if you decide to go for the multiple mortgages option, over a short span of time, your credit report will not reflect that action, as that’s normally treated as a single query.

In conclusion, when rate quotes are compared, ensure that you carefully examine the Annual Percentage Rate, and not just the interest rates. APR is a reflection of the total annual cost of your mortgage.

Insights on the Housing Market

Industry experts predict that home prices are expected to continue on their current upward trend and the construction of new homes will continue at its same slow pace, placing buyers in a tight housing condition in the coming days. To cut down their costs, some buyers may be forced to turn towards more affordable suburbs, rather than high priced mega cities. For others, their choices could be limited to downsizing, or even foregoing essential amenities or vital contingencies such as home inspections. Nevertheless, be watchful about doing away with contingencies as that may cost you much more on a longer term basis should the premises later develop issues that were not previously fixed by the property seller due to your deciding to forego the initial inspection.

Another decisive consideration is to determine the length of your planned stay on this property. When buying your ‘forever home’, you have less to worry about if the market should reverse its trend because you can rise and fall with the tide. But if, as a buyer, you plan to move out within a few years, you run the risk of the market plummeting, without a warning. That is the reason why you need to shop right from the start for a reliable realtor and an upfront lender who is an experienced housing professional in the market of your choice and someone you can fully trust for giving you sound and proven advice.