Monday Market Update: Mortgage Rate Projections Hit The Headlines

The talk of the 2023 real estate season has been the “R” word: rates. While inventory levels, or a lack thereof, have defined much of the real estate landscape over the last 5+ years, this is the year where historic low rates are not as historically low as they have been.* But is that trend likely to continue? How much more will rates rise? According to 3 recent articles, maybe not the best – but the better – is yet to come!

“What Goes Up Must Come Down? Why a Mortgage Rate Free-Fall May Be Dead Ahead” | Realtor.com

Published just 3 days ago, this article from Realtor.com quotes Sam Khater, Chief Economist of Freddie Mac, as projecting that “…rates should gently decline over the course of 2023. The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.”

“Mortgage Rate Forecast For 2023” | Forbes

Also at the end of last week, Forbes reported a small uptick in interest rates from 6.39% to 6.43%, but noted that “many housing market watchers are holding out hope that interest rates already hit their peak last year.” With that being said, one strategy recommended by Robert Frick, ​​Corporate Economist at Navy Federal Credit Union, is to “Be prepared to jump on a dip in rates. But only if you have a property in mind that fits your budget.”

“'Welcome news' for homebuyers as analysts expect mortgage rates to slide over the course of 2023” | Yahoo! News

This weekend, Yahoo! News reiterated a small increase in rates amidst hopeful homebuyers envisioning lower rates to come. The article also quotes Senior NAR® Economist Nadia Evangelou as she notes that they expect rates to fall to 5.8% by the end of the year.

Does any of this rate news surprise you? Would lower rates by year end change your plans? Improve your confidence in the market? Please be sure to work closely, over time, with a trusted real estate agent AND licensed loan officer to help you plan, analyze and strategize the opportunities that could exist for you. Knowledge is power.

*Note that this article is for informational purposes only and is not a rate quote nor guarantee of any current or future lending costs and interest rates. Please consult with a licensed mortgage broker to calculate actual lending costs in the current market.

Have a great start to May!

Bobbi & Team 

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
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