Mortgage rates may spike 30% next year, according to a new forecast
As if the housing market weren’t complicated enough these days, the Mortgage Bankers Association says higher rates are on the way—and homebuyers at the end of 2022 could be paying nearly 30% more for a 30-year fixed-rate mortgage.
A new survey from the MBA predicts 30-year rates, which hit record lows last July, will average 4% by the fourth quarter of next year. (That compares with 3.1% now.) It doesn’t look to be a short-term increase, either. Heading into 2023, rates could potentially go as high as 4.3%—a 39% jump from where they are today.