As people grow older, they realize that the future is always uncertain and full of possibilities. While it’s great to plan for the best-case scenarios, knowing what could happen in the worst-case helps them prepare more effectively, both financially and emotionally. So how will mortgage rates change in 2022? A good starting point is asking yourself these two questions: What will happen in the world by 2022? And what’s likely to happen with real estate markets and home affordability?

Federal Reserve’s monetary policy

The first thing that one should know is that interest rates generally follow the economy. If the economy slows down, interest rates usually decline as well. While this may be hard to accept, one can look at history for confirmation. The Federal Reserve decides on the direction of interest rates, and they’re known for making very predictable moves. They’re often slow to increase rates.

Unemployment levels

So mortgage rates usually go up when there’s a rise in inflation and employment. However, there are a lot of other factors to consider when predicting mortgage rates. The market is constantly in flux, and no one can determine what will happen. It’s impossible to know how the market will respond to different political events or economic indicators. However, it is possible to take a closer look at some headlines that Americans are already familiar with.

The Fed doesn’t control all interest rates.

Mortgage rates are determined by the bond market, which consists of lenders. So if the Fed hikes interest rates but the bond market doesn’t follow suit, mortgage rates could still stay low. Conversely, if the Fed lowers rates but the bond market increases, mortgage rates will go up.

Macroeconomy

It’s impossible to look at home affordability without considering the macroeconomy. Unemployment rates, inflation levels, consumer spending and government debt are all significant factors that dictate how easily people can afford a home in any given year. They should also keep an eye on interest rates in other countries to see if they influence our rates.

Real estate market

The real estate market is another important consideration when predicting mortgage rates. If the market is hot, prices will go up, and lenders will be more likely to offer high-interest rates to profit. However, if the market is slow, lenders may be forced to compete for homebuyers. This could keep rates low even when the economy is slowing down.


In conclusion, predicting mortgage rates is a tricky business. While we can make some educated guesses, it’s impossible to say for sure what will happen in 2022. Keep an eye on the news and talk to your lender to stay up-to-date on the latest interest rate trends. Whatever happens, be prepared for the unexpected!