Now there’s only one place left for mortgage rates to go, according to experts, and that is up. In 2021, the average 30-year fixed mortgage rate rose roughly 0.5%. Most experts are predicting 2022 mortgage rates to rise a similar amount.
The majority of economists and housing marketing analysts we talked to believe mortgage interest rates will gradually drift higher as the year progresses. But there was not a clear consensus on how much and when. The possibility of new COVID-19 variants, such as Omicron, looms as a threat to our public and economic health and could stall economic progress.
Adding to the potential upward pressure for mortgage rates is the recent Federal Reserve announcement to speed up the unwinding of the bond market and plans to raise short-term interest rates three times in 2022. Both of these actions are expected to help rates tick higher.