Now Is The Time To Buy

Housing Market
Written By Joshua Baumgardner

Last week, the average 30-year fixed mortgage rate from Freddie Mac jumped from 3.22% to 3.45%. That’s the highest point 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 projections from Freddie Mac for this year:

  • Q1 2022: 3.4%

  • Q2 2022: 3.5%

  • Q3 2022: 3.6%

  • Q4 2022: 3.7%

As the numbers show, this jump in rates is in line with the expectations from Freddie Mac. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year. But should you be worried about rising mortgage rates? What does that really mean for you?

As rates increase even modestly, they impact your monthly mortgage payment and overall affordability. If you’re looking to buy a home, rising mortgage rates should be an incentive to act sooner rather than later.

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 (see chart below):

 
2022 Mortgage Rate Projection
 

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 rising costs and future rate increases while also securing your payment amount for the long term.

Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:

“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. If inflation continues to grow at the current pace, rates will move up even faster in the following months.”

In Summary

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.

Joshua Baumgardner

Growing up with family roots in both property management and construction to eventually becoming Vice President of TTR Sotheby’s International Realty, Joshua was destined for a life in the real estate industry. Joshua spent the first years of his career as a professional opera singer, and the owner of a private voice studio. It didn’t take Joshua long before he felt the undeniable yearning to return to his roots in real estate.

With an unrelenting ambition to surpass the expectations of each client, Joshua is committed to making the buying and selling process as smooth as possible. As a member of The Alliance Group, Joshua works closely with his team members to assist each client and their unique situations. The team’s expertise spans every facet of the industry from working with first-time homebuyers to listing the luxury properties of global clients. Joshua's team is one of the highest-producing groups in the DC Metropolitan area, and a multi-year recipient of the Best of Washington, Best of Arlington, and RealTrend Top Producer Awards.

Joshua calls the vibrant NoMA neighborhood home, and can often be found brunching along 16th Street, biking the C&O Canal Trail, serving at Foundry United Methodist Church, or spending a Saturday evening enjoying a new opera or musical.

Joshua is a graduate of James Madison University, and Florida State University, a member of the National Association of Realtors, The Northern Virginia Association of Realtors, and a founding member and serves on the boards of the Wagner Society of Washington DC and the LGBTQ+ Real Estate Alliance. Follow Joshua on Instagram @LiveTheDMV.

Joshua’s team is founded on the shared vision that luxury is a level of service and not a price point, with the team’s individuals sales ranging from $220K to $9.98M, totaling nearly $1 billion in combined lifetime sales.

https://www.LiveTheDMV.com
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