Mortgage Rates Going Into 2022
What Affects Mortgage Rates
A lot of things determine mortgage interest rates but mortgage rates generally mirror current overall economic conditions. Throughout the pandemic for the past two years, unemployment was high and a lot of people’s financial situations were shaky. As a result, mortgage rates during that time hit record lows. With people going back to work and the economy began to level out, mortgage rates took a sharp turn back upward in January and are expected to rise throughout 2022.
It’s a seller’s market right now, with far less homes on the market than usual and record high prices. That said, there are steps you can take to maximize your chances of getting into a home, starting with having your finances organized and getting pre-approved.
Selling a Home in 2022
It is still very much a seller’s market going into 2022. Inventories are low, prices are high, and mortgage rates should continue to climb throughout the coming year. This means more offers, and offers from highly motivated buyers, making the selling process likely to run more smoothly.
Home Buying in 2022
While rising mortgage rates may seem scary, they could be a sign that now is the time to move. If you’ve been diligently working on your finances, consider getting pre-approved to see what homes you can afford. As the market continues to be extremely competitive, being ready to jump on opportunities is especially key. Also, buying now could allow you to lock in a lower interest rate before they go even higher.
Lower income buyers may feel especially discouraged as rates climb and housing prices remain high. If this is you, consider thinking outside the box with condos, or a more outdated home or fixer-upper. As more companies are shifting to work-from-home employees, a home further outside the city could also be a solution. There are mortgage loans designed for low-income and first-time home buyers. Talk to a Mortgage Buddy expert to learn more about what options exist to fit your unique needs.
ARMS (Adjustable-Rate Home Loans)
While they declined in popularity following the 2008 housing crisis, new protections have been added that may make an adjustable-rate home loan a viable option for buyers. It is predicted that this type of loan will begin to regain popularity as mortgage rates continue to rise. Our experts can compare loan types to see if an ARM is a good choice for you.
Special Programs to Help All Buyers
Buyers with alternative income sources or other special circumstances may run into hiccups working with traditional lenders. Mortgage Buddy specializes in helping all types of business owners obtain home loans, even if you work freelance or a large part of your income comes from tips. We take a consultative approach, with a large selection of specialized programs. Whether you’re a freelancer, gig worker, large or small business owner, we have the experience to find the perfect program for your unique situation.
We also specialize in working with foreign nationals to purchase homes or land, as well as programs specifically for investment properties. The Mortgage Buddy team includes an assortment of lenders with different niches and expertise.