Todd Sheinin, Homespire’s Chief Operating Officer, sat down with Autumn to talk about what economists and forecasters are saying could happen with mortgage interest rates in 2022.
AUTUMN: As we approach 2022, I wanted to get your thoughts on the housing market in the new year. What do you think is going to happen with rates?
TODD: That’s the million dollar question. Everybody wants to know – Are rates going to go up? Are rates going to go down? Are rates going to stay the same? And the honest answer is it’s really hard to predict. Most forecasters and economists, I think, will predict that there’s going to be a little bit of an increase over the year in interest rates. I don’t think it’s going to be anything substantial. And I do think we’re going to see some of this ping-ponging within a range that we’ve seen for a good portion of this year at least. I think there’s going to be some of that movement with rates. I don’t believe that we’re going to see rates get into the 4% range. I think they’ll probably hover somewhere in the mid-threes.
And just as likely as that, though, is the possibility that rates fall the other way. It just kind of depends on what happens — what happens with the virus. This is still impacting us almost two years later with Omicron now. These things are impactful. They’re impacting the supply chain. Supply chain issues ultimately can impact the overall economy, and that impacts interest rates.
The best advice that I think anybody could ever give or receive as it comes to interest rates is the moment that you’re looking, when the time is right for you, if it makes sense, if a refinance — if the rate available saves you money and it works, lock it in, secure it, don’t gamble. If you’re looking at buying a home and there’s a good rate out there that works for your budget and it makes sense with the payment for you, go ahead and lock it in. Don’t gamble on it thinking that it’s going to go an eighth of a percent lower or a quarter of a percent lower. If you try to think about it from that perspective, that it’s an eighth of a percent, maybe, that you’re going to be gambling on, go ahead and lock it down, take your rate, be happy, and move forward with your house.
AUTUMN: Alright. Thank you so much, Todd.
TODD: Thanks, Autumn