MOLINGO: Mortgage Lingo with Michele Hammond, Carbon Team at CrossCountry Mortgage

Many economists expected rates to rise in 2022, but very few thought it would happen so quickly. 30 yr fixed rates hit the highest level since March 2020 (pre Pandemic), and we also saw the largest one-month jump since 2013! Many home buyers were shocked and are curious – why did this happen? There are multiple factors but perhaps the most impactful came from the Federal Reserve. The Feds released comments indicating they plan to aggressively run off their MBS (Mortgage Backed Securities) portfolio. When the Feds pull back their demand for mortgages, this will lower the price, raising market rates. When we combine this with elevated inflation, and favorable unemployment data, the result is an upward trend in mortgage rates.

Industry experts now forecast the rates will continue to increase in 2022. What does that mean for someone looking to buy or refinance? While rates increased, we are still writing loans at historical lows. It’s still a great time to lock in before rates rise further. Building supplies and labor costs have jumped along with the rates, which means we may actually see a shortage in housing inventory and a significant increase in the price of the finished home. If you were on the fence about buying, all of this indicates it’s time to get off the fence and make a move now.


Michele Hammond
Vice President of Lending
CrossCountry Mortgage, LLC

C: 443.415.6031

Personal NMLS85839 Branch NMLS1601092
Company NMLS3029

Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC NMLS3029 (