On January 13, 2023 U.S. News published a lengthy report based upon interviews with several housing economists. The general consensus was that mortgage rates are expected to decline by the end of the year.
Fannie Mae sees rates going from 6.5% in the 1st quarter to a flat 6% by year’s end.
Freddie Mac agrees, seeing rates at 6.2% by the end of the year.
Mortgage Bankers Association sees rates at 6.2% in the 1st quarter, sliding down to 5.2% by year’s end.
National Association of Realtors envisions 5.7% by year’s end.
Realtor.com is an outlier, seeing the mortgage rate at 7% throughout the year.
Redfin sees the rate declining to about 5.8% by the end of the 4th quarter.
They all agree that affordability continues to be a big issue, with a housing shortage exacerbating the situation and 1st time homebuyers being squeezed because their earnings are $30,000 less than the income needed to purchase a starter home.
Stay tuned!