Andrew Shader Explains Where Mortgage Rates Are Headed


Although many economists try to forecast where mortgage rates (and interest rates) are going, they aren’t always accurate. An excellent example of this happened early this year. Andrew Shader, a Ft. Lauderdale real estate entrepreneur, explains this year’s mortgage rates.

As 2021 came to a close, many experts projected that mortgage rates would increase gradually in 2022 and that we would see numbers in the high 3% range. However, by April, those rates had already climbed well past that number and had hit 4.72%. Not long after Freddie Mac announced this rate, the Mortgage News Daily reported an average mortgage interest rate of 5.02%.

Mortgage Rates Are on a Quick Climb

The good news (especially for sellers of homes) is that even though rates have risen much more quickly than even the most aggressive forecasts had predicted, the increase in mortgage rates hasn’t significantly impacted purchaser demand. In fact, in the first quarter of 2022, the number of showings, home prices, and homes receiving multiple offers increased significantly.

Andrew Shader explains that higher wages and low mortgage rates helped offset increasing housing prices. However, since mortgage interest rates have approached 5% and home prices have soared over the past couple of years, homebuyers may be struggling to find properties they can afford comfortably.

Where Are Mortgage Rates Going from Here?

With inflation rates increasing at record levels, most economists and experts agree that property prices and mortgage rates will follow suit in the months ahead. Consumers considering buying a home should know that these increasing rates will significantly impact their monthly housing payments. The bottom line is that if you’re thinking about purchasing a home, the time to do so is sooner rather than later.

Even though it’s impossible to predict precisely where mortgage rates are going, it’s a good bet that the days of 3% mortgage rates are long gone. Likewise, if things continue to progress as they have been, the days of 4% mortgage rates will be over, too.

Even small increases in mortgage rates on the average 30-year fixed-rate loan will add up to thousands of dollars homeowners will pay over the life of that loan. An experienced real estate professional will be able to help you locate properties and put together offers that will put you ahead of the competition, enabling you to lock in today’s mortgage rates before they go any higher.

Developer and Investor Andrew Shader

Andrew Shader is a real estate developer, investor, and entrepreneur in Ft. Lauderdale, Florida. He founded his real estate business in 2016 after cultivating a background in accounting, training, insurance, leadership, and technology. Mr. Shader is a graduate of Florida State University, having earned a bachelor’s degree in business, marketing, and management.

Since he began his real estate business, he has built a portfolio around his strategy of focusing on value-added properties. Andrew Shader purchases properties not for what they currently are but for what they could be, and then he brings them to their full market potential. This philosophy has led to increases in property values of more than 60% without relying on future appreciation.


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