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At Geneva, we are consistently trying to remind our clients of time-sensitive opportunities. We’ve covered this frequently and for good reason. Even now, you are running out of time to take advantage of a cash-out refinance.

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Last week, the average 30-year fixed mortgage rate from Freddie Mac jumped from 3.22% to 3.45%. That’s the highest point it’s been in almost two years. If you are wanting to tap into your equity there is no better time to act than right now. With equity at an all-time high and rates on the rise, it could be your last chance.

On the other side, If you’re thinking about buying a home, this news may have come as a bit of a shock. But the truth is, it wasn’t entirely unexpected. Experts have been calling for rates to rise in their 2022 projections, and the forecast is now becoming a reality. Here’s a look at the projections from Freddie Mac for this year:

Q1 2022: 3.4%Q2 2022: 3.5%Q3 2022: 3.6%Q4 2022: 3.7%

As the numbers show, this jump in rates is in line with the expectations from Freddie Mac. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year. But should you be worried about rising mortgage rates? What does that really mean for you?

As rates increase even modestly, they impact your monthly mortgage payment and overall affordability. If you’re looking to buy a home, rising mortgage rates should be an incentive to act sooner rather than later.

If you are looking to refinance, you still have time. There is a multitude of reasons homeowners refinance including but not limited to:

Reducing Mortgage Term (pay it off faster)Debt Consolidation FHA and VA Streamline (no cash-out, easier qualifying)Removing Mortgage InsuranceCash-Out Refinance (Tap Into Your Home’s Equity)Pay off DebtFinance A Renovation Fund An Education Invest

The good news is, even though rates are climbing, they’re still worth taking advantage of. Historical data shows that today’s rate, even at 3.45%, is still well below the average for each of the last five decades (see chart below):

That means you still have a great opportunity to buy now with a rate that’s better than what your loved ones may have paid in decades past. If you buy a home while rates are in the mid-3s, your monthly mortgage payment will be locked in at that rate for the life of your loan. As you can see from the chart above, a lot can change in that time frame. Buying now is a great way to protect yourself from rising costs and future rate increases while also securing your payment amount for the long term.

Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:

Mortgage rates surged in the second week of the new year. The 30-year fixed mortgage rate rose to 3.45% from 3.22% the previous week. If inflation continues to grow at the current pace, rates will move up even faster in the following months.”

With this information on hand, homeowners need to act fast to ensure they can benefit from a refinance. You might have missed the chance to refinance your home for a lower rate/payment (depending on your mortgage situation) but a cash-out refinance is still a great option available to you. If you are curious if you should refinance your home, read more here.

See what your mortgage payment can look like by using our mortgage calculator below:



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Kyle Best

Kyle Best graduated from Eastern Kentucky University in the Spring of 2020 with a major in Business Management and a minor in Banking and Financial Services. Kyle also grew up in central Kentucky and is starting as a new Loan Officer for Geneva Financial.

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Feel free to contact us if you have any questions or would like a second option on your existing mortgage.