We have the future Mortgage Rate Predictions. We could see a shift in the housing market in 2022 in Metro Detroit due to interest rates. Why? Mortgage Rates have skyrocketed in the last 30 days due to Inflation and the Feds 10-year Treasury Yield. Watch 👇👇👇 DETAILED VIDEO for a better understanding.
Mortgage Rate Predictions for Feb. 2022
Mortgage rates have increased significantly since the beginning of the year. Each Thursday, Freddie Mac releases its Primary Mortgage Market Survey. According to the latest survey, the average 30-year fixed-rate mortgage had risen from 3.11% when we closed out 2021 to tipping into the 4% range in February. Depending on the day of the week and credit score they range is between 3.85% into the 4% range. Due to the increase in mortgage rates, we could see a shift in the housing market. Unfortunately, the expert’s predictions for 2022 are wrong. Due to Inflation and the Fed’s cutting back buying 10-year Treasury Yields, we now see mortgage rates skyrocketing. The graph below represents where interest rates were and where they were going.
Mortgage Rate Predictions: Where are they headed
While it’s always tricky to know precisely where mortgage rates will go, a great indicator of where they may head is by looking at the 50-year history of the 10-year treasury yield and then following its path. Understanding the mechanics of the treasury yield isn’t as important as knowing that there’s a correlation between how it moves and how mortgage rates follow. Here’s a graph showing that relationship over the last 50 years:
The climb in the Treasury Yield
This correlation has continued into the new year. The treasury yield has started to climb, and that’s driven rates up. As of last Thursday, the treasury yield was 1.81%. That’s 1.74% below the mortgage rate reported the same day (3.55%) and is very close to the average spread we see between the two numbers (average spread is 1.7).
Where Will the Treasury Yield Head in the Future?
A 10-year treasury-yield forecast would be a good indicator of where mortgage rates may be headed with this information in mind. The Wall Street Journal just surveyed a panel of over 75 academic, business, and financial economists asking them to forecast the treasury yield over the next few years. The consensus was that experts project the treasury yield will climb to 2.84% by the end of 2024. Based on the 50-year history of following this yield, that would likely put mortgage rates at about 4.5% in three years.
Correlation between Fixed Mortgage Rates and 10-year Treasure Yield
While the correlation between the 30-year fixed mortgage rate and the 10-year treasury yield is apparent in the data shown above for the past 50 years, it shouldn’t be used as a clear indicator. They’re both hard to forecast, especially in this unprecedented economic time driven by a global pandemic. Yet understanding the relationship can help you get an idea of where rates may be going. Based on the information we have now, it appears that mortgage rates will continue to rise over the next few years. If that’s the case, your best bet may be to purchase a home sooner rather than later, if you’re able.
Mortgage Rate Predictions: Will it affect the housing market?
If the increase in Mortgage Rates stays steady at 3.75%, we could see a shift in Buyer Demand. The shift could also start to affect home prices. Why? As fewer buyers enter the marketplace, it will influence whether a property will receive multiple offers. This will all depend on supply and demand by City and Price Range. When you review the graph below, it’s clear buyers will have to adjust their price range to stay on budget. It will be essential to review Metro Detroit Housing Market Updates ~ monthly to keep updated. Better yet, request our newsletter. To give you an idea of how rising mortgage rates impact your purchasing power, see the table below:
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It’s Important to Know the Housing Market before You Buy or Sell
Housing Market Trends, Future of Home Price, and Your City Trends by Price 👈 Range.
To succeed in an ever-changing market, I believe education is key. I don’t know about you; I don’t want to spend more than I have to when I buy.
More importantly, I want every penny I’m due when I’m selling as well. With a massive spike in interest rates, it will be crucial to Know the Market You’re In. I’ve provided 3-year live Home Price trends by city and price range.
Also, 3-year live graph regarding the housing inventory and how strong your negotiation is. You also have access to custom data for Sold Homes, so you don’t have to rely on Public Websites Estimates
Peek into My Crystal Ball Below:
Please take a quick review of the video regarding the future of Home Prices ~ we could see a shift in the market due to increased inflation. For Questions or help, call or text 📲 248-343-2459. It’s essential if you’re Buying or Selling is to know and understand the numbers. Sign up for our Newsletter to Keep Up to Date or check back around the 15th of the month.
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Don’t muddle through the Home Buying and Selling Process. Buying a new home is a dream for all of us, and it’s an emotional and stressful process.
It also involves the most significant financial transaction you probably will make in your lifetime. Your Selling Guide…It will help you work through the selling process using the latest in high-tech market tools, so you make MORE MONEY.
Our goal is to separate your home from the competition, keep Buyers focused on your house. The Selling Guide is very detailed and works step-by-step, so you’re guaranteed Top Dollar for your home.
Bottom Line for Mortgage Rate Predictions
Forecasting mortgage rates is challenging. As Mark Fleming, Chief Economist at First American, once said:
“You know, the fallacy of economic forecasting is don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”
Simplifying Real Estate Through Education
As we move forward, it’s been challenging as we navigated through all the changes. Putting your dream of a new home on HOLD shouldn’t be one of them. Now more than ever, knowledge will be your power. Know the Market You’re In and your Negotiation Power. Check out Categories for additional updates regarding the Market | Buying | Selling
If You Need To Sell 1st… I Recommend 🛑Doing This!
No 2 homes are alike, and agents need to 🛑 marketing ONE size fits all. We no longer have an exposure problem (internet). Your home is buried on public home search internet sites. The only way to compete on those platforms is the price. If you want more money, you need to apply Influence. Separate your home from the competition, so the Buyer sees value. Keeping them focused on your property and not getting lost in homes’ inaccurate data on public internet sites is necessary. Having digital omnipresence on serval platforms is your key to success. Remember MORE INFLUENCE = MORE 💰. We have details on how you can utilize High Tech Marketing and Win!
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