Rising Mortgage Rates

It seems to be a great challenge to avoid discouraging news about mortgages and homeownership in 2022. It might even seem like no matter where you look, there’s a social media post or article about how difficult it is to obtain a mortgage, how home prices are impossibly high, and how mortgage rates are hitting new highs.

And while some of those things may be true, depending on your area and local housing market, you can’t always believe everything you read. The truth is a little more complex. To fully understand the current state of mortgage rates, you must consider the rates forecast for 2022, how those numbers compare to historical interest rates and the availability of mortgage broker rates.

Mortgage Rates from 2019 to Now

At the beginning of the pandemic, the federal government tried to aggressively stimulate the economy by backing lower interest rate mortgages. As a result, we saw historically low mortgage rates across the board. But as supply chain issues disrupted the availability of goods and national demand didn’t budge, inflation started to pick up.

So, by the end of 2021, with inflation still rising, the federal government reversed course and started incrementally tightening its policies on government-backed mortgage lending. And once the war began in Ukraine, the federal government tightened even more, which ultimately resulted in the spike we are currently experiencing.

Mortgage Rates Forecast for 2022

Due to higher inflation, supply chain issues, and economic pressure from federal policymaking, mortgage rates have spiked to unprecedented levels and could continue to rise throughout 2022. But, of course, there’s still a silver lining here. Though current mortgage rates are higher than they were at the beginning of the pandemic, they are still much lower than decades ago.

That being said, the most critical question we have to answer is: what’s going to happen in the future? And that might surprise you. While we are currently experiencing higher mortgage rates, this isn’t permanent. Eventually, the global and national economy will stabilize, and interest rates will drop.

Knowing when that’ll happen is difficult, but experts believe it will. But, of course, if you’re interested in buying a home right now, that may not sound very reassuring.

How Mortgage Rates are Impacting Homebuyers in 2022

If you’re looking for your dream home in 2022, it can be challenging to hear about rising interest rates. Such news could potentially negatively impact your ability to purchase your dream home, which is the last thing you want to hear. So, homebuyers are rightfully frustrated and disheartened.

Beyond that, this kind of difficult news also adds to the widespread belief that the housing market is unstable and volatile, which isn’t true. There are just extenuating socio-political circumstances impacting the national and global economy, which affects the mortgage and real estate industries. Thankfully, there’s a solution that many people don’t know about.

Introducing Mortgage Broker Rates!

When working with an experienced mortgage broker, they don’t use the one-size-fits-all approach. Instead, mortgage rates can and should be tailored to the individual. This is why true professionals will do everything in their power to get you the interest rate that matches your financial situation and circumstances.

That’s why it’s so essential for all homebuyers to work with a mortgage broker. A mortgage broker can shop rates that fit the specific homebuyer, which means they’ll do whatever it takes to get you the best rate possible.

Interested in Working With a Professional Mortgage Broker?

Are you interested in finding homes for sale in Ponte Vedra, Jacksonville, or any of the surrounding areas in Northeast Florida? If so, you’ve come to the right place. Here at Atlantic Trust Mortgage, our team of mortgage professionals specializes in finding the best deals possible for our clients, with mortgage rates tailored to their individual needs.