The markets are well into the new year, which means there are several new predictions about how 2023 mortgage rates will fare. Following years of high inflation and bolstered rates, the new year’s mortgage rate predictions now point to a downward trend. Is the recent data right that it is time to begin looking into purchasing a home?
Here’s a 2023 market update for a holistic assessment of the expected mortgage trends.
Three Trends to Watch in 2023
What are the main factors impacting interest levels and mortgage rates this year? Three interesting trends could impact your real estate decisions.
A Recent Increase in Mortgage Pre-Approval
Home affordability is still a concern despite the potential for financial assistance, with prices and closing costs remaining high. Expected increases in mortgage pre-approval add an additional barrier for those entering the buyers’ market. What hasn’t changed is the need to maintain a healthy credit score for the best chance at navigating the competitive pre-approval process.
Mortgage Inflation Report Trending Down
The inflation and mortgage rate tug-of-war can be confusing. However, while the Federal Reserve’s actions to decrease inflation typically increase rates long-term, current inflation trends are encouraging. The mortgage rates should continue to decrease, though federal restrictions to dampen inflation could unfavorably impact mortgage rates later in the year.
Lower Mortgage Rates for 2023
Overall, buyers can enjoy restoratively lower mortgage rates that experts predict will continue to drop. As rates decline, buyers will have a better chance of securing affordable financing. Why not take the steps now to organize your financial data for faster pre-approval applications?
The real estate market can be daunting for home buyers and sellers alike. Consulting the experts provides the best chance of navigating this process effectively.
Spring 2023 Market Update
According to an article by Forbes, experts predict that the housing market in 2023 will continue to be strong, with a particular emphasis on the spring market. One of the key factors driving this growth is expected to be lower interest rates, which will make it more affordable for buyers to purchase a home. Additionally, a growing number of people are expected to enter the housing market as the economy continues to recover from the impact of the COVID-19 pandemic.
Another trend anticipated to drive the housing market in 2023 is a shift in housing preferences, as many people look for larger homes with more outdoor space, as well as homes that are more energy-efficient and sustainable. This is likely to lead to increased demand for homes in suburban and rural areas, as well as for homes that have been recently renovated or updated to meet these new preferences.
However, experts also warn that there will be some challenges in the housing market in 2023, such as a limited supply of homes for sale and increased competition among buyers.
Additional Read: How to Overcome the 5 Biggest Obstacles in the Homebuying Process
Overall, it is expected that the housing market will continue to be strong in 2023, but with some challenges along the way. It’s recommended that buyers should be prepared for a competitive market and work with professionals like Realtors and Mortgage Consultants to navigate through the process.
