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DiBugnara believes we can expect relatively low rates to continue, at least for a while.

“The national average interest rate will likely stay somewhere around 3.25% for 2022. There is not enough stability in the market to sustain a large increase in interest rates,” he says.

Rick Sharga of RealtyTrac, by contrast, is forecasting an average rate of 3.5% by mid-year 2022 and an end-of-year rate of 3.75%.

“Mortgage interest rates are likely to go up for several reasons, including continued economic growth and higher yields on U.S. 10-year treasuries, which often directly influence interest rates on 30-year fixed-rate loans,” Sharga says.

“Another significant factor is the Federal Reserve’s recent announcement that it would begin to taper its purchases of $40 billion a month in mortgage-related securities, which alone should give mortgage rates a bump.”

Lord subscribes to that theory.

“Based on my economic analysis, I predict a modest rate increase to 3.7% in 2022. Rates cannot increase drastically, given the current fiscal environment,” adds Lord.

Others wouldn’t be surprised if rates creep even higher than these estimates.

“Look for 30-year fixed rates to move and then hold steady in a rate range of 3.75% to 4.25% by late 2022. Even with that jump, keep in mind that mortgage interest rates will remain at historically favorable levels,” says Buege.

Source: https://themortgagereports.com/85263/housing-market-predictions-2022