After years of record-low figures, mortgage rates turn volatile as we progress into 2022. With the onset of the novel coronavirus pandemic, mortgage rates plummeted alongside the global economic uncertainty. However, last year, the United States generated a much faster than anticipated economic rebound.
In fact, 2021 home sales achieved their best year on record since 2006. One month into 2022, analysts already predict higher mortgage rates before the end of the year.
Mortgage Rates Turn Volatile
Mortgage rates won’t turn volatile overnight. On the face of it, mortgage rates appear typical. They face fluctuation in the day-today as they always have. Having said that, behind those fluctuations and relative stability lies multiple major swings.
In a quote from Realtor.com’s Chief Economist Danielle Hale, she said, “The apparent stability in weekly rates averages out some bigger day-to-day swings in both mortgage and other long-term rates, so home shoppers should be prepared for a bit less calm than the weekly data suggest.”
Mortgage Rates Jump to Two-Year High
In the first major piece of evidence for mortgage rates turning volatile, they saw a massive fluctuation in just a 24-hour period. After dropping to their lowest levels in over a week, mortgage rates skyrocketed to their highest point in two years.
Two major factors contribute to huge swing. First, the United States, Russia, and Ukraine continue to face tensions, which impact global economic markets. Secondly, news of mortgage rates increasing has spread for well over a month. As prospective home buyers continue to feel mounting pressure to “act now”, the demand for homes increases. Thus, mortgage rates rise with the improving real estate market.
Mortgage Rates Continue Volatile Turn Throughout 2022
As we look ahead to the rest of 2022, many analysts speculate that mortgage rates face mounting pressure to rise. Some groups, such as the Mortgage Bankers Association, anticipate a rise up to 4% in the first quarter alone.
Despite this news, current home buyers still have plenty of opportunity to make their move and lock themselves into a lower rate in the new year. For questions as mortgage rates turn volatile, get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office.
- If a party to the closing is not feeling well, please contact your closer before the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash their hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients to do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.