It is really hard to believe that 2022 has already arrived. It is such a futuristic-sounding number, but still, people cannot see the flying cars around. What is waiting for us this year? There are lots of changes that might happen in the whole scenario of doing the business, even on the mortgage rates. If you are planning to buy a home on a mortgage, you should know the latest mortgage rates before you start to invest. Mortgage rates are always fluctuating and the changes depend upon a lot of factors.
Why the Mortgage Rates Increased In the Last Year
At the beginning of 2021, the people witness the lowest 5 years of fixed-rate which was around 1.39%. But, the experts predicted that the rates can be a little bit higher at the end of the year. The prediction was wrong, the rates are not a little bit higher but they are a lot higher at the end of 2021. Though the pandemic has not ended, the economy of the country has recovered faster than has been predicted.
Some so many people were frustrated about the pandemic that they started to develop a careless attitude in them. But, generally, people are getting out of homes spending their money and it is overall driving the economy of the country.
What Is the Effect of Omicron on Mortgage Rates?
The omicron variety crates an uncertainty in the minds of the people and has forward contributed to the increasing rate of the mortgage. As per the mortgage brokers, the rates will be kept on growing in the upcoming days as well. As people are predicting that 2022 will be the last year of the pandemic, the mortgage rates will be higher at the end of the year.
The increasing mortgage rates will be concerning for those who are thinking to renew the mortgage and also for those who are thinking to buy the same. Hence, it is always better to keep an eye on the increasing rates that will help in making a decision.
For the ones whose mortgage rates will be renewed in 2022, you should be locking in a rate up to 120 days before the maturity date. To know the best mortgage rate, consult the mortgage broker from Flash Financial who will guide you on the available mortgages in Victoria. Flash Financial is one of the most reputed mortgage companies in Victoria.