It's an interesting question that I have discussed with several home buyers lately.

The economy is on a tear... inflation is rampant... housing markets (including our own) are seeing double digit per year increases in sales prices.

One action that the Federal Reserve is taking to combat these factors is to raise interest rates.

Mortgage interest rates are now approaching 6% -- after having started the year just over 3%.  Wow!

But... if the rates have risen this high to get things (the economy, inflation, housing markets) to cool off a bit... if/when they do, will interest rates eventually decline again? 

I don't know that they'll ever go back down towards 3%, and maybe not 4%... but is it possible within the next few years that we will see mortgage interest rates of 4.5% or 5%?

It seems possible?  I certainly won't say that it is likely, but it is certainly possible.

This possible future reality is providing some residual comfort to home buyers who are going ahead and buying in 2022. 

They can afford the mortgage payments at the current rates of close to or at 6%, but they'd love to be paying a lower mortgage payment for their home at some point in the future.

If their theory holds true... perhaps we will see interest rates eventually decline, somewhat, allowing 2022 home buyers to refinance to take advantage of future lower rates.

Clearly, there is no guarantee that this will happen... but it does seem possible.