Mortgage Interest Rate Predictions for 2022


After historically low mortgage interest rates have made headlines in 2020 and 2021, you may be wondering what experts predict in 2022.

Keep reading to find out what you need to know about interest rates in 2022.

Interest Rates in 2022 So FarMortgage Interest Rate Predictions for 2022

So far this year, interest rates have remained historically low, though we have seen an uptick in recent days. The two major factors in play that have contributed to recently rising rates are increasing inflation rates and a growing economy.

Expert Predictions

While there are no guarantees about interest rates in 2022, experts whose names you know are predicting that rates will go up multiple times this year.

Goldman Sachs recently said we should expect the Federal Reserve to raise rates four times this year, after previously predicting there would be three rate hikes. The federal funds rate is currently set at about 0.08%, but it is likely to increase by a full percentage point by the end of 2022.

While still historically low, you can expect mortgage interest rates in 2022 to return to pre-pandemic rates. This change is already taking place, as many mortgage rates surged this week to the highest they have been since early 2020.

When Will Rates Go Up?

The Federal Reserve has reaffirmed plans to end bond purchasing in March, with a likely interest rate hike during the month as well. This means you have a tight timeline before the market begins to shift.

Federal Reserve Chair Jerome Powell said in a news conference that the intention of changes is to “keep persistently high inflation from becoming entrenched” and that they have not made any firm decisions, keeping a “humble and nimble” perspective.

Factors That May Affect Predictions

Predictions for mortgage interest rates in 2022 are based on the expertise of industry professionals and the information we have, but these predictions are subject to change. If the last two years have taught us anything, it’s that unprecedented changes are always possible.

For example, interest rates were expected to rise in the final quarter of 2021, but this rate hike was slowed by the spread of the Omicron variant in December. As changes in the pandemic, bond purchasing by the Federal Reserve, the job market, and the overall economy take place, predictions for interest rates in 2022 will adapt.

What This Means for You

These changes and predictions should inform your real estate plans for this year. Here’s what the expected changes in mortgage interest rates in 2022 mean for you:


Interest rates in 2022 are expected to increase incrementally at least three, and possibly more, times. This means the earlier in 2022 that you are able to purchase, the better.

Demand for homes in the Bay Area is expected to remain high, so your timeline for selling in 2022 does not need to be as dependent on rate changes as buying does.


As you think ahead to buying a home in 2022, consider the way rising rates may affect your budget. If your monthly payment needs to stay under a certain price, you may be limited by rising interest rates if you wait to purchase later in the year.

For more information about buying and selling real estate in the Bay Area, contact me today!

Amar Realtor offers expert real estate services with proven results in the Cupertino real estate market as well as outlying areas including homes for sale in MilpitasSan JoseCampbell and properties in San Mateo Countyhomes in Contra Costa and Alameda County.

Thinking about buying? Here are more tips for home buyers:

5 Things to Know About Bay Area ADUs

What Does the 2022 San Fransisco Housing Market Look Like?

What to Know about CA SB-9

How the Federal Reserve Affects Mortgage Rates

Should You Choose an Adjustable Rate or Fixed Mortgage?