March 11, 2022 –Hispanic Solutions Group
As announced by pollsters and experts. Mortgage rates rose again this week, reflecting easing fears over the new omicron variant of the coronavirus and the growing likelihood of higher interest rates in the future. The average rate on 30-year mortgages rose to 3.28% from 3.24% last week, according to a weekly survey of large lenders.
Mortgage experts expect rates to continue rising from the record low hit in January 2021, but the latest public health scare has changed things. According to the recent survey a year ago, the benchmark 30-year fixed-rate mortgage was 2.96%. Four weeks ago, the rate was 3.22%. The 30-year fixed-rate average for this week is 0.06 percentage point below the 52-week high of 3.34%, and 0.35 percentage point higher than the 52-week low of 2.93%, it reported.
They also reported that, over the past 52 weeks, the 30-year fixed rate has averaged 3.12 percent.
Where are mortgage rates headed?
Concerns about a resurgence in coronavirus cases are weighing on stocks and US Treasury yields, which were in the 1.47% range on Wednesday. Last month, yields had risen to 1.65%. Meanwhile, the Federal Reserve signaled on Wednesday (yesterday) that it will raise rates in a move to curb inflation.
Mike Fratantoni, chief economist at the Mortgage Bankers Association, says the average rate on a 30-year mortgage will hit 3.5 percent by the middle of next year in 2022 and 4 percent by the end of 2022.
“Inflation is well above target and the job market is booming,” says Fratantoni. “That’s why it was no surprise that the Fed moved to accelerate its tapering of purchases of Treasuries and (mortgage-backed securities), signaling that the first rate hike will come sooner rather than later. Also, the middle member (Federal Open Markets Committee) now expects three rate hikes in 2022.”
The Mortgage Bankers Association expects refinancing activity to die down as rates rise. But he also expects a strong home sales market in 2022. James Sahnger says, “Now is a great time to refinance to consolidate debt, make needed home renovations, and eliminate PMI if you have it.”
“Rates are likely to rise this week after the Fed suggested rate hikes are on the horizon for 2022,” says Gordon Miller. “But that doesn’t necessarily suggest that they will be higher at the end of the year.”
Refinancing is known to still be a good deal at these rates
Rates remain a bit above record lows hit earlier this year, but refinancing is still historically great business. The rate on 10-year bonds issued by the US government moved to 1.46 percent this week. The 10-year Treasury is closely tied to 30-year mortgage rates.
Economists generally expect rates to rise by the end of 2022. As mortgage rates make a projected slow climb to the 3.5 percent range, declining purchasing power could ease some of the pressure on mortgage prices. the dwellings.
But competition will remain intense among those who can still afford to buy. Those looking to refinance should be able to find good deals for the rest of the remaining year, albeit at slightly higher rates than the current level.
Finally: If you see a rate that fits your needs and budget, the time to do that refinance could be today. In fact, many homeowners with a mortgage have not benefited from the low rate environment. Among homeowners with a mortgage that they had since before the pandemic, 74 percent have not refinanced according to a recent survey by a specialized company.
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