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

<article class="post-155479 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-155479"><span class="entry-date">January 19, 2022</span><div class="entry-header center-block text-center"><h1 class="entry-title">With Mortgage Rates Climbing, Now’s the Time To Act</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=With+Mortgage+Rates+Climbing%2C+Now%E2%80%99s+the+Time+To+Act&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fwith-mortgage-rates-climbing-nows-the-time-to-act%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
<div class="fb-share-button display-inline-block" data-href="https://gilliggroup.com/blog/with-mortgage-rates-climbing-nows-the-time-to-act/" data-layout="" data-size=""><a class="facebook solid fb-xfbml-parse-ignore" data-tracking="Post,Social Post Link Clicked,Twitter" href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fwith-mortgage-rates-climbing-nows-the-time-to-act%2F&amp;src=sdkpreparse" target="_blank"><span class="force-hidden">Facebook</span></a></div>
<a class="pinterest solid display-inline-block" count-layout="horizontal" href="https://pinterest.com/pin/create/link/?url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fwith-mortgage-rates-climbing-nows-the-time-to-act%2F&amp;description=With+Mortgage+Rates+Climbing%2C+Now%E2%80%99s+the+Time+To+Act" target="_blank"><span class="force-hidden">Pinterest</span></a>
<a class="linkedin solid display-inline-block" href="https://www.linkedin.com/shareArticle?mini=true&amp;url=https://gilliggroup.com/blog/with-mortgage-rates-climbing-nows-the-time-to-act/?shareSlug%3Dwith-mortgage-rates-climbing-nows-the-time-to-act" target="_blank"><span class="force-hidden">LinkedIn</span></a>
<a class="email dashicons dashicons-email solid display-inline-block" href="mailto:?subject=From gilliggroup.com: With Mortgage Rates Climbing, Now’s the Time To Act&amp;body=With Mortgage Rates Climbing, Now’s the Time To Act%0D%0Dhttps://gilliggroup.com/blog/with-mortgage-rates-climbing-nows-the-time-to-act/" target="_blank"><span class="force-hidden">Email</span></a>
</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div>
<p><img alt="With Mortgage Rates Climbing, Now’s the Time To Act | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/01/18161913/20220119-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/01/18161913/20220119-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/01/18161913/20220119-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>Last week, the average 30-year fixed <a href="https://www.simplifyingthemarket.com/2021/11/24/how-smart-buyers-are-approaching-rising-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2">mortgage rate</a> from <em>Freddie Mac</em> <a href="https://freddiemac.gcs-web.com/node/24636/pdf">jumped</a> from 3.22% to 3.45%. That’s the <a href="http://www.freddiemac.com/pmms/pmms_archives.html">highest point</a> 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 <a href="http://www.freddiemac.com/research/forecast/20211015_quarterly_economic_forecast.page?">projections</a> from <em>Freddie Mac</em> for this year:<span id="more-45869"></span></p>
<ul>
<li>Q1 2022: <strong>3.4%</strong>
</li>
<li>Q2 2022: <strong>3.5%</strong>
</li>
<li>Q3 2022: <strong>3.6%</strong>
</li>
<li>Q4 2022: <strong>3.7%</strong>
</li>
</ul>
<p>As the numbers show, this jump in rates is in line with the expectations from <em>Freddie Mac</em>. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year. <strong>But should you be worried about rising </strong><a href="https://www.simplifyingthemarket.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2"><strong>mortgage rates</strong></a><strong>? What does that really mean for you?</strong></p>
<p>As rates increase even modestly, they impact your monthly mortgage payment and overall <a href="https://www.simplifyingthemarket.com/2021/12/09/two-reasons-why-waiting-to-buy-a-home-will-cost-you/?a=712984-fa409495d5d70154d03a25e81e9540e2">affordability</a>. If you’re looking to buy a home, rising mortgage rates should be an incentive to <strong>act sooner rather than later</strong>.</p>
<p>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 (<em>see chart below</em>):</p>
<p><a href="https://files.simplifyingthemarket.com/wp-content/uploads/2022/01/18161911/20220119-MEM-Eng-1.png"><img alt="With Mortgage Rates Climbing, Now’s the Time To Act | Simplifying The Market" class="aligncenter wp-image-45870" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/01/18161911/20220119-MEM-Eng-1.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/01/18161911/20220119-MEM-Eng-1.png 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/01/18161911/20220119-MEM-Eng-1-400×300.png 400w" width="650"/></a></p>
<p>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 <a href="https://www.simplifyingthemarket.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/?a=712984-fa409495d5d70154d03a25e81e9540e2">rising costs</a> and future rate increases while also securing your payment amount for the long term.</p>
<p>Nadia Evangelou, Senior Economist and Director of Forecasting at the<em> National Association of Realtors </em>(NAR), <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-january-13-2022">says</a>:</p>
<blockquote>
<p>“<em>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. <strong>If inflation continues to grow at the current pace, rates will move up even faster in the following months.”</strong></em></p>
</blockquote>
<h3><strong>Bottom Line</strong></h3>
<p>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. Let’s connect to start the homebuying process today.</p>
</div>
</div></article>