There’s never been a truer statement regarding forecasting mortgage rates than the one offered last year by Mark Fleming, Chief Economist at First American:
“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.”
Coming into this year, most experts projected mortgage rates would gradually increase and end 2022 in the high three-percent range. It’s only April, and rates have already blown past those numbers. Freddie Mac announced last week that the 30-year fixed-rate mortgage is already at 4.72%.
To read the full article on mortgage rates predictions, please click on this link: Where are Mortgage Rates Headed
Bottom Line
Mark Fleming got it right. Forecasting mortgage rates is an impossible task.
However, it’s probably safe to assume the days of attaining a 3% mortgage rate are over.
The question is whether that will soon be true for 4% rates as well.
I am always happy to help answer your real estate questions and put you in touch with a qualified mortgage professional to set your goals of home ownership!