FREE E-EDITION OF PRAIRIE BUSINESS

“The government then announced it would stop investing their dividends, and eventually start selling off many of the mortgage-backed securities it had purchased,” he said. “This sparked the slow rise of interest rates beginning late in the third quarter of 2021 and continuing through today.

He said rates will most likely settle at 4% to 4.5% on 30-year fixed mortgages and 3.125% to 3.5% on 15-year fixed mortgages, “but there’s still uncertainty on where rates are heading. Adjustable mortgage rates have been comparable to fixed rates, so most people have been opting for fixed-rate mortgages to avoid potential rate fluctuations.”

When inflation is high, he said, so are mortgage rates; as inflation declines mortgage rates should settle down as well.

He said something people can do to help protect themselves is make sure they have good credit, something that is achieved over time and not gained all at once.

“Over the last 10 years, the average interest rate on 30-year mortgages has been in the 4.125%-4.25% range,” Schumacher said. “To get the best rates, it is very important to take good care of your credit score. Credit scores impact several aspects of buying a home, from interest rates to the cost of homeowners’ insurance.”

Wolf, using his professional lens, said he isn’t too worried about rising rates as long as they’re slow and steady. Construction, manufacturing and other industries continue to develop and grow in the region – there is “a lot of activity, a lot of projects” here, he said – all signs of a healthy economic atmosphere.

“A rising interest rate environment can still be healthy for the economy in this region as long as they don’t increase rates too rapidly,” he said. “Our client base is projecting to grow their businesses and invest in this region, and we expect that to continue throughout 2022.”