Economic Volatility Forces Mortgage Rates to Continue to Fluctuate The constant fluctuation in the market, with stocks and mortgage rates, continues to keep the economy on a financial roller coaster. With the continuation of the COVID-19 pandemic and increased inflation, the constantly changing mortgage rates make it challenging for people to find a home they can afford. Mortgage Rates Plummet to Hit an All-Time Low In the history of the United States, mortgages were never available at such low rates. Mortgage rates hit an all-time low of 3.31% in November 2011. These interest rates were part of the historic housing bubble that popped up during the Obama Administration. As the housing market rebounded during the following years, the interest rates slowly rose to normal levels again. Such a low drop reoccurring was unheard of until the COVID-19 pandemic hit in 2020. The pandemic largely changing to endemic status in the US left mortgage interest rates on homes very high, and that’s part of the reason that we see many people unable to afford to purchase a home. Many families are left with only the option of renting at this time. As of December 2020, the mortgage rates plummeted again as the COVID-19 pandemic continued to ravage America. By the end of December 2020, more than 334,000 Americans died of COVID-19. Along with the hot housing market, it plummeted to a new low. A Freddie Mac mortgage rate was as low as 2.68% by the end of 2020. Mortgage Interest Rates Increase Again The “return to normal” has sent the mortgage rates higher than they have been in some time. Many areas have currently seen mortgage rates begin to rise again. As time passed, some states chose to start opening up again as they tried to return to normal, causing the housing market to start heating up again. As of 2022, many markets are reporting mortgage interest rates as high as 6.5% to almost 7%. Economic growth currently remains strong, but persistent inflation may see these mortgage interest rates continue to increase in the coming months and the upcoming year ahead. What Will Determine Mortgage Rates Over the Next Year? It is believed that if inflation continues the mortgage rates may see another modest increase in 2022, but more huge increases seem unlikely. However, there are scenarios where mortgage rates may plummet or rise sharply again before the end of the year. One thing that would push numbers back lower is if serious COVID-19 cases surge again and more economic shutdowns follow. The sharp rise or plummet of mortgage rates is expected to be dependent on several factors. Mortgage rates may go even higher if inflation does not cool down in the coming months. Experts appear to be torn on if we’ve seen the worst of inflation, or if there is more to come. The ultimate answer is. The real answer is that we simply don’t know what will come in the future, despite even the best predictions. The best predictions have indeed been made by many experts. These predictions state that perhaps mortgage rates will increase modestly throughout the end of 2022. No huge increases or decreases are likely in interest rates moving forward for the rest of the year. However, these are only predictions and the actual results remain to be seen. For more information on the mortgage rates in our area and for more information on how to get yourself the best mortgage rates possible, please feel free to contact us at Atlantic Home Mortgage for more information. We are always here and happy to help you find the best rates possible on your next home! mortgage rates Atlantic Home Mortgage Alpharetta Click to Call or Text: (888) 309-4643 This entry has 0 replies Comments are closed.