For example, going from a 5% mortgage with 26 years left on it to a 4% rate but at 30 years, will cause you to pay more than $13,000 in interest.īefore you start shopping around for a lender, you can find out how much you could save by using Forbes Advisor’s mortgage refinancing calculator. While refinancing options can lead to a lower monthly payment, not all of the options yield less interest over the life of the loan. However, while it’s difficult to try to time the market, homeowners who can shave between 0.5% to 1% of their interest rate by refinancing might want to make a move sooner rather than later. According to Black Knight, a real estate data analytics firm, the overall refinance share of the market was at 45% in October, the lowest it’s been since June 2021.Īnd with rates set to rise again in 2022, many people who just bought homes within the last few years may not see the advantage of refinancing. “Nevertheless, even with expected increases, the low mortgage rate environment will remain favorable for potential homebuyers and those thinking about refinancing.” Is There Still Time To Refinance?Īs rates continue to rise, the number of borrowers refinancing their mortgages has diminished. “The recent concerns around new COVID variants and potential impact on economic activity continue to create uncertainty and could keep the rates subdued,” says Hepp.
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There are curveballs like another significant spike in a Covid-19 variant that, if it causes the economy to retreat, we could see mortgage rates flatten or even drop. “Rates have been so low for so long it might be surprising for some-but 3.6% was a record low in 2019.” “We don’t expect to see major shocks,” Hale says. “Given mortgage rates are closely tied to the 10-year Treasury yield, and that yield isn’t expected to rise much in the next year-if at all-rates could rise slightly but are likely to remain below 3.5%,” says Robert Frick, corporate economist for Navy Federal Credit Union.ĭanielle Hale, the chief economist at, expects rates to tick up about half a percentage point to 3.6% in 2022, a jump that’s “not big enough to disrupt the market.” Others are looking at Treasury yields to indicate that rates may not jump as much as widely predicted.
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Selma Hepp, deputy chief economist at CoreLogic, predicts rates will be closer to 3.4%.
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Lawren Yun, chief economist at the National Association of Realtors (NAR), forecasts mortgage rates to hit 3.7%.Michael Fratantoni, chief economist for the Mortgage Bankers Association (MBA), says rates could reach 4% by the end of 2022.Here’s a few predictions from market experts. Most housing experts point to inflation and the Fed accelerating its asset-purchase tapering as sure signs of higher mortgage rates, ranging in the upper 3% up to 4% by the end of 2022.