For the first time this year, the average 30-year fixed mortgage rate plummeted to 3.71% after peaking at 3.3% by the end of 2021. In essence, many factors influenced the change in mortgage rates, such as the Omicron variant, the ongoing inflation, and the potential conflict in Ukraine.
On that note, it’s hard to predict in which direction the rates will go. According to experts, we’re to expect a lot of volatility over the following months. In other words, the rates will probably balance each other out, so much so that they might even reach 4%.
Experts also believe that by the end of 2022, the rates will stay relatively low, whereas the housing demand should stay more or less the same (read: stable).
If we make a comparison, in 2019, the highest 30-year fixed mortgage rate reached 4.05%, only to drop down to 3.88% in 2020, 3.34% in 2021, and finally to 3.75% in 2022.
Conversely, the lowest 30-year fixed mortgage rate reached 3.74% in 2019, 2.95% in 2020, 2.93% in 2021, and 3.4% in 2022.
What’s more, home prices noted the biggest change in numbers. Namely, in 2019 the national average home price amounted to $271,900. In 2020 it reached $296,700, while in 2021, it amounted to a record high of $353,900 (as of November 2021).
This represented the highest jump in prices since 2006. For instance, in February 2021, the costs increased by 12% no less (compared to 2020).