The housing market to weaken further in 2023 as affordability issues, softening economic environment and low consumer confidence are likely to continue to erode demand.
▶ TIME STAMPS
00:00 Intro 00:27 2023 Experts Weighing In Mortgage Rates and Housing Market 00:59 Housing Market 2023 Predictions 6:12 Mortgage Rates 2023 Predictions 10:00 Outro
▶ VIDEO NOTES
U.S. Real Estate - Homebuilders 2023 Outlook
Fitch Ratings expects the housing market to weaken further in 2023 as affordability issues, softening economic environment and low consumer confidence are likely to continue to erode demand. Housing affordability will remain challenging, particularly for first-time or entry-level buyers, as mortgage rates and home prices remain elevated. Fitch expects the U.S. economy to enter a mild recession in mid-2023. This, combined with a weakening employment market, will likely further erode consumer confidence, which is a key factor in home-buying decisions.
HSH.com mortgage website vice president, Keith Gumbinger: “At this point, a peak for rates seems likely to come earlier in the year and flatten/turn downward later, and the 30-year FRM (fixed-rate mortgage) will probably run in a 6.5% to 7.5% range for the year.”
ATTOM executive vice president of market intelligence, Rick Sharga: “Assuming that Fed actions this year show progress in slowing down inflation, the Fed can begin to back off its rate increases, and mortgage rates can begin to come back down as well—but much more slowly than they went up this year. In a best-case scenario, we may see rates for 30-year mortgages somewhere between 5.5% to 6% by the end of 2023.”
Zillow Senior Economist Jeff Tucker: “If inflation convincingly cools down, and the Fed subsequently stops tightening monetary policy, we could see rates begin to ease back down. The best bet is that we continue to see mortgage rates in the ballpark of current levels, perhaps from 6.5% to 7.5%.”
Mortgage Bankers Association (MBA): An average of 5.5% at the end of 2022 and 5.4% at the end of 2023. “We expect significant volatility in rates in the near term due to quantitative tightening by the Fed and other central banks, and as markets grapple with significant geopolitical, economic and monetary policy uncertainties.”
National Association of Realtors (NAR) Chief Economist Lawrence Yun: “The new normal for mortgage rates look to be near 7% for the 30-year fixed rate. A better rate of 6% will be available to those willing to go with a five-year ARM.”
Freddie Mac: Forecasts rates dropping from an average of 6.8% in the fourth quarter of 2022 to 6.2% in the fourth quarter of 2023.
▶ FORECLOSURE.COM Find Real Estate Opportunites First Get the best real estate deals first, with one simple search Click on the link to learn more - https://bit.ly/RBFindForeclosures
This content is for educational and entertainment purposes only. Please see the about page for a complete disclaimer.
This description contains affiliate links that allow you to find suggested resources. When you purchase items from these affiliate links Ric Bender may receive compensation. Thank you for your support.
