When Will Mortgage Rates Go Down in 2022?

Abstract

Table of Contents: Mortgage Rates Today Financing or Cash: Which Is the Best Option for You? Is Refinancing a Good Idea These Days? Wrapping It Up As mortgage rates for June hold steady for the time being, people are wondering if they will go down soon. People are growing tired of the increase in expenses that many are asking, "When will the mortgage rates go down?" Mortgage Rates Today For us to know when mortgage rates will go down in 2022, we need to understand a few things first. Based on the numbers above, the average mortgage rate for 2021 was only 2.99%. Rates only started picking up in January 2022, rising from the previous month's 3.10% to 3.45%. From there, it went up to 5.27% in May 2022. The Federal Reserve's Recent Percentage Point Rate Hike One of the things that can affect mortgage rate trends is the Federal Reserve. Given the recent development, what does the latest rate hike mean for you? Will it make mortgage rates go down this year? And if it does, when will mortgage interest rates go down? According to Federal Reserve Chairman Jerome Powell in his briefing on Wednesday, "The Fed is strongly committed to bringing inflation back down." The latest hike is only a part of a rate-hiking cycle that aims to crush inflation without leading to a recession. Given the rate at which they've increased, it's hard to say how high mortgage rates will go for the rest of the year. Currently, at the rate things are going, there are only about 1.3 million homeowners who can reduce their rate by up to 0.75%. However, each time the rates go up, the number of borrowers who can save money on refinancing also dwindles.