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Mortgage rates climbing faster than in 2021

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Mortgage Rates.jpg

Mortgage rates climbing faster than in 2021

ROCKFORD (WREX) — Mortgage rates are continuing to climb into the new year.

The 30-year fixed-rate mortgage averaged 3.22% this week, up from 3.11% last week. This week's jump in the first week of the new year is higher than at any point in 2021.

Experts at the National Association of Realtors say the 30-year figure will rise to 3.7% by the end of 2022. Other analysts estimate that the number may reach 4%.

One local expert says a small percentage change in the mortgage rates can make a huge difference in making the decision in buying a home.

"The interest rate difference in one half of one percent on a $150,000 house is $42 per month," says Pam DeSanti, Vice President of Mortgage Lending at Midwest Community Bank in Rockford. "For some people, that could make or break what their qualifying is. To others it may not have a significant impact."

At this time last year, the 30-year mortgage rate was 2.65%, the lowest on record. Since then, rates have been rising, as expected, as the economy improves and inflation rises.

Some potential homebuyers may be reluctant to make a decision in a volatile housing market. DeSanti advises, don't worry about the fluctuations in the mortgage rates.

"If you're interested in buying a house, don't wait for the rates to go up or down, just buy the house you like," DeSanti says. "If the rates go down, you can refinance. There's always opportunities and your local lendor is going to guide you through and say when it's worth it and when it is not worth it."