With the end of 2022 just around the corner, those considering buying homes in the new year may be wondering what's going to happen in the housing market come 2023. Take a look at the latest expert insights on mortgage rates and home prices so you can make the right decision when it comes to buying and searching for a home.
Inflation Will Continue to Influence Mortgage Rates in 2023.
The market has responded to high inflation with the surge in mortgage rates this year. As a result, we have seen abrupt increases in mortgage rates. In fact, the average 30-year fixed mortgage rate exceeded 7% last month, for the first time in 20 years.
The interest rate was under 3% a year ago. Despite mortgage rates not being as high as they were in the 80s, they have more than doubled in the last year. Real Estate has never seen mortgage rates double in a year.
Since we are in a groundbreaking market, it is difficult to predict how mortgage rates will evolve. Predicting mortgage rates in the near future can be complicated, but experts agree that they will continue to adjust along with inflation. Rates on mortgages are likely to increase if inflation remains high.
There Will be Differences Between Markets When it Comes to Home Price Changes.
Due to higher mortgage rates, buyer demand has cooled off in numerous cities this year, leading to more sustainable home prices. According to experts, speculations for next year are diverse. The common opinion is that home appreciation will differ from market to market, with more popular areas facing more drastic changes. Where the market values climbed the highest, we will see the biggest cool downs.
Overall, some markets might see modest price growth, while others might see prices fall. There are many components that lead to these outcomes.
Conclusion
Find out what experts are saying about home prices and mortgage rates by contacting our trusted real estate professionals.
