Mortgage Rates are Continuing to Rise; Now is Your Time to Build!

     Mortgage rates are typically the biggest factor in impacting how much you can afford if you are going to build a home. The lower the mortgage rate, the more house you can get with your money. During the pandemic, mortgage rates hit the lowest that has ever been recorded. However, as the economy has changed for the worse, the rates have begun to rise. Currently, the 30-year fixed mortgage rate is 3.14%.

      How will this affect your decision to build a house? It is better in the long run to begin building with Faber Builders NOW. If you wait another year, things will only continue to rise again. Several experts have opinions on mortgage rates as we move 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.”

     In the future, any type of rise in percentage is going to have an impact on what you will have to pay every month throughout your loan lifetime. That can add up significantly as material/labor prices and mortgage rates rise. It is going to cost you more money to build a home in one year, compared to what it will cost you during the present time.

     As stated, experts are predicting that mortgage rates are going to increase in the coming months. The table below compares other experts’ views and gives an average of those projections: