3 Housing Market Changes: What Rising Interest Rates Mean for 2022 Housing
Mortgage rates have already jumped a whopping 57 basis points since the start of last year, with the average rate on 30-year loans sitting at 3.22% -- the highest point since at least May 2020.
Unfortunately, that upward trend is only likely to continue as 2022 goes on. With the Fed pulling back on its purchases of mortgage-backed securities, not to mention a flurry of potential hikes in the federal funds rate -- Goldman Sachs predicts four by the end of the year -- it's almost inevitable.
But just how much will they rise? That's uncertain. Economists vary widely in their predictions. Over at the Mortgage Bankers Association, experts forecast a 4% rate by year's end. Fannie Mae expects just 3.30% (though we've nearly surpassed that number already).
Source Fool.com
