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After seeing record low interest rates in 2020 and 2021, we’re all waiting to see what 2022 will bring.
Current projections for 2022 anticipate increases in mortgage rates throughout the year. The Federal Reserve is expected to take action and target inflation, which is currently at a 30-year high. To combat this, the Federal Reserve is projected to increase rates three times, starting as early as March 2022. The Federal Funds Rate does not directly influence TruStone’s mortgage rates but, the continued tapering of treasury and Mortgage-Backed Securities (MBS) purchases that began in November of 2021 will, no doubt, drive mortgage rates higher. In October 2021, the Federal Reserve was still purchasing $40 billion in MBS each month which will be reduced to zero by March. Whether the Federal Reserve will start selling the purchased MBS is a question left unanswered.
Fannie Mae’s economics team anticipates a gradual increase over the course of 2022. At the local level, we’ve already seen the rates increase as a reflection of the ongoing transition of post pandemic recovery. If you’re thinking of buying a home, now is the time to act before rates continue to rise.
At TruStone our local experts are committed to putting your needs first, helping you choose the solution that’s right for you. Let us help you make a house your home. Contact us today!
|| A note from Nathan Grunzke, Chief Mortgage Officer
This blog article is intended to provide you with a general understanding of the subject matter. It is not intended to provide legal, accounting, or other professional advice and should not be relied on as such. Information may have changed since the publication date. TruStone Home Mortgage is a division of TruStone Financial. Equal Housing Opportunity.