Experts Project Mortgage Rates Will Continue to Rise in 2022

Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. When rates are low, they help you get more house for your money. Within the last year, mortgage rates have hit the lowest point ever recorded, and they’ve hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.09%.

What does this mean if you’re thinking about making a move? Waiting until next year will cost you more in the long run. Here’s a look at what several experts project for mortgage rates going into 2022.

Freddie Mac:

“The average 30-year fixed-rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022.”

Doug Duncan, Senior VP & Chief Economist, Fannie Mae:

“Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.”

First American:

“Consensus forecasts predict that mortgage rates will hit 3.2 percent by the end of the year, and 3.7 percent by the end of 2022.”

If rates rise even a half-point percentage over the next year, it will impact what you pay each month over the life of your loan – and that can really add up. So, the reality is, as prices and mortgage rates rise, it will cost more to purchase a home.

As you can see from the quotes above, industry experts project rates will rise in the months ahead. Here’s a table that compares other expert views and gives an average of those projections: Whether you’re thinking about buying your first home, moving up to your dream home, or downsizing because your needs have changed, purchasing before mortgage rates rise even higher will help you take advantage of today’s homebuying affordability. That could be just the game-changer you need to achieve your homeownership goals.

Bottom Line

If you’re thinking of buying or selling over the next year, it may be wise to make your move sooner rather than later – before mortgage rates climb higher. Get started today by checking out our Dunwoody homes for sale, Sandy Springs home for sale, and Chamblee homes for sale!

The Main Key to Understanding the Rise in Mortgage Rates

Every Thursday, Freddie Mac releases the results of their Primary Mortgage Market Survey which reveals the most recent movement in the 30-year fixed mortgage rate. Earlier this month the rate was announced as 3.01%. It was the first time in three months that the mortgage rate surpassed 3%. In a press release accompanying the survey, Sam Khater, Chief Economist at Freddie Mac, explains:

“Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June.”

The reason Khater mentions the 10-year U.S. Treasury yield is because there has been a very strong relationship between the yield and the 30-year mortgage rate over the last five decades. Here’s a graph showing that relationship:

The relationship has also been consistent throughout 2021 as evidenced by this graph:

The graph also reveals the most recent jump in mortgage rates was preceded by a jump in the 10-year Treasury rate (called out by the red circles).

So, What Impacts the Yield Rate?

According to Investopedia:

“There are a number of economic factors that impact Treasury yields, such as interest rates, inflation, and economic growth.”

Since there are currently concerns about inflation and economic growth due to the pandemic, the Treasury yield spiked last week. That spike impacted mortgage rates.

What Does This Mean for You?

Khater, in the Freddie Mac release mentioned above, says:

“We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.”

Nadia Evangelou, Senior Economist and Director of Forecasting for the National Association of Realtors (NAR), also addresses the issue:

“Consumers shouldn’t panic. Keep in mind that even though rates will increase in the following months, these rates will still be historically low. The National Association of REALTORS forecasts the 30-year fixed mortgage rate to reach 3.5% by mid-2022.”

Bottom Line

Forecasting mortgage rates is very difficult. As Mark Fleming, Chief Economist at First American once quipped:

“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.”

That being said, if you’re either a first-time homebuyer or a current homeowner thinking of moving into a home that better fits your current needs, keep abreast of what’s happening with mortgage rates. It may very well impact your decision.

Looking Past COVID-19: Ramping Up for What’s Next

At Karen Cannon, Realtors, we understand the challenges that are presented by the COVID-19 pandemic. No one could have known that this virus would bring the world to a screeching halt, and we could not have known that 2020 would see a great stock market, good job reports, and growth all stop in a few short months. Even so, we are dedicated to making our clients’ home buying and selling needs our top priority as well as making the process as safe as possible.

There are a few tips here that explain what the road back should look like, and you can even begin to look for new properties, sell with confidence, and work remotely with a Realtor® right now. As the top-rated Dunwoody agents, our team has the expertise to assist our buyers and sellers with everything related to Dunwoody and Sandy Springs real estate including other surrounding locations in North Atlanta.

How Has the Housing Market Changed?

Luckily for the team here at Karen Cannon, Realtors, our hard work and expertise allowed us to remain consistent during the first month of COVID-19 and actually see similar numbers to the same time last year. April and May were also great months for us as everyone kept busy, but we knew that we needed to do something to accommodate all our clients who wanted to buy and sell homes.

We also know that June, July, and August can be busy months in our industry. Some of our clients may be nervous as they look for Dunwoody and Sandy Springs homes, or simply want to search all of North Atlanta. This is why our top-rated Dunwoody agents will offer more than ever to help our clients.

How Have We Improved Virtual Services?

We have expanded our virtual offerings to make sure that every client feels as safe and as comfortable as possible throughout the home buying and selling process. Our team uses specialized tools, technology, and practices to help keep our clients and team members safe during COVID-19.

First, we are always available to meet with each of our clients virtually. Whether it be on Facetime or Zoom, our clients’ comfort and safety will always be our first priority. Next, we offer expanded digital offerings for our listings. Strengthening the digital presence of listed homes through photography, video home tours, 3D virtual tours, aerial photography, floorplans, and virtual staging allows more people to view their dream home from the comfort of their current one.

Interest Rates Are Dropping

Interest rates have been dropping and that makes it even easier to work with one of our professional Realtors®. We can show you how to choose the most appropriate home and help you find financing. We have established relationships with many local and trusted providers and would be more than happy to connect you with the financing provider that best fits your needs. When you work with us, we help you through the entire process, making it as stress-free and seamless as possible.

People Are Already Shopping for Homes

At Karen Cannon, Realtors, we know that many people have already been shopping for their next home. Many have been using this time at home to start looking for something that will help them move to the next phase of their life. We understand and are ready to help our clients make the best choice for them.

Are Sandy Springs & Dunwoody Homes Selling?

Dunwoody and Sandy Springs are affluent areas in Northern Atlanta that attract those craving a traditional suburban lifestyle but with close proximity to corporate businesses and commerce. This area is filled with older homes that have the charm you are looking for, planned developments that you will love, and even new construction.

While we may have seen a slight decrease in activity at the initiation of COVID-19, the months of April and May were consistently busy. Now that June has started with the same level of demand, we anticipate that to continue along the same trend.

Reach Out to Karen Cannon, Realtors Today

The housing market is rebounding and we have been extremely active during the pandemic. We are an “essential business” that has been safely operating as people look to sell their homes. We also help first-time home-buyers and people relocating to Sandy Springs and Dunwoody. We ensure that each home closes successfully and we will be with you long after you close on your home. Explore Dunwoody homes for sale and Sandy Springs home for sale today!

Five Fun Atlanta Events For the Family This Fall

It’s one of the best times of the year: fall! And you know what means, endless festivals, county fairs, pumpkin patches, and Halloween! There’s plenty of activities for everyone to enjoy this season throughout Atlanta and surrounding areas. Here are 5 popular family-friendly fall outings that will make your autumn even more memorable.

Truck-or-Treat

Join the City of Dunwoody as they host this year’s final Food Truck Thursday with a festive Truck-or-Treat day, October 24th from 5 p.m.-9 p.m. at Brook Run Park! This day will include the usual tasty delights and great music with a Halloween twist. Bring out your best costumes for an all-ages costume contest. There will also be Dunwoody Police vehicle exhibits. Find out more information here.

North Atlanta Fall Festival

The North Atlanta Fall Festival will take place on October 27th from 4 p.m.-7 p.m. at 5185 Peachtree Dunwoody Road. Have a few little ones that want to tag along? No worries! Babysitting will be provided during the festival. Enjoy trunk-or-treat, games, delicious food, fun booths, and costume contests! You can learn more about the NA Fall Festival here.

Spooky Springs

Get spooky at the City of Sandy Springs’ Spooky Springs festival on October 26th, from 5 p.m.-7 p.m. in Abernathy Greenway Park. Every October, this safe, family-friendly event brings out young trick-or-treaters ready to indulge in games, costume attractions, and plenty of candy! If you’re looking for a safe environment for your children to enjoy Trick-or-Treating, you’ve found the place! Learn more here.

Art in the Park

Art in the Park puts a creative spin on Halloween festivities. Spend the evening painting a “cat in a pumpkin” at this artsy event happening October 26th from 2 p.m.-5 p.m. in the Hammond Community Building. Bring your own non-alcoholic beverage and snacks while socializing and creating art with your family and friends! Click here to learn more about Art in the Park.

Fall-o-ween Fest

The Fall-o-ween Fest is a free annual event featuring lawn games, trunk-or-treating, and their very own hay maze! It will take place on October 27th from 5 p.m.-9 p.m in the Home Depot Backyard. You’ll also be able to showcase your best costume and enjoy a movie night under the stars. Families and friends are welcome to bring lawn chairs and blankets to enjoy the outdoor showing of Coco. Popcorn and drinks will be available for purchase along with food from local vendors! Find out more about this fun fest here.

Like what you see? Dunwoody, Sandy Springs, Roswell, and the surrounding area offers year-round activities for the entire family. We can help you find the right place to make your move. Give us a call us at 770-352-9658 send us an email at Info@KarenCannon.com. Check out our current listings here.

Brookhaven: A Perfect Balance of City & Suburban Life

Brookhaven has always been known for its unique proximity to Atlanta’s Buckhead neighborhood and the international corridor that runs through it along Buford Highway. Brookhaven is charming and quaint, and while it only covers 12 miles, it offers neighborhoods to suit all types of families.

Historic Brookhaven

Historic Brookhaven was the home of the most prominent Atlantans when it was first built in the early 1900s. With homes designed by a number of well-known Atlanta architects of the pre-war period, this neighborhood was built around the Capital City Country Club’s 18-hole golf course. Architects like A.F.N. Everett and Preston Stevens, Sr. built these homes as summer retreats, taking into account sun patterns and when light hits certain areas of the homes. The porch, study and living areas are on the east side of the homes to take in the morning sun. The dining room and kitchen are on the south side to bring in the afternoon sun. This still known for being one of metro Atlanta’s wealthiest neighborhoods.

North Brookhaven

This suburban community is home to two large parks, Blackburn Park and Murphy Candler Park, the Nancy Creek PATH trail, historic Peachtree Golf Club and top-rated public and private schools. Surrounded by various residential subdivisions, North Brookhaven also contains a restaurant and retail district, located at Ashford Dunwoody and Johnson Ferry Roads, where you can grab a bite to eat, shop or take a walk.

Brookhaven Village

Brookhaven Village is the name given to the town center that emerged at Village Place Brookhaven on Dresden Drive, east of the Brookhaven MARTA station. It’s a small neighborhood with gorgeous townhomes that feature architectural details and accents. A number of restaurants and shops have been added to form a mixed-use development where residents and visitors can live, work and play.

Town Brookhaven

Town Brookhaven is one of the city’s newest mixed-use developments, located on Peachtree Road next to Oglethorpe University. This pedestrian-friendly village is 460,000 square feet of shops, services, and restaurants. Residents can spend an entire day here, checking out local boutiques, enjoying one of the many restaurants, or catching a movie at the Cinebistro. There are events scheduled year-round at Town Brookhaven like the Best of Town in the spring that highlights the best food and drinks at the restaurants in the developments.

Brookhaven is quickly becoming a popular destination to eat, work, and play in the metro Atlanta area. It’s a thriving suburban community with a small town feel and all of the perks of the big city. The area attracts visitors of all ages, from Oglethorpe University students to empty nesters.

At Karen Cannon, Realtors, we are local real estate experts for Brookhaven, Dunwoody, Sandy Springs, and North Atlanta. We live, work, and play here, and our agents are hand-picked for their connections in the community. Our clients know about homes coming on the market before anyone else. And our highly effective marketing program allows us to shorten the number of days on the market. We’ve even put homes under contract sight unseen!

If you are thinking about selling your home, or are interested in moving into Brookhaven, Dunwoody, Sandy Springs or the surrounding areas, call us at 770-352-9658 send us an email at Info@KarenCannon.com. Check out our current listings here.