What’s behind the current housing market?
Forbes detailed the challenges faced in the current housing market, and has several key takeaways that home buyers need to take into account. First, housing prices have continued to rise, but are showing signs of cooling off in several popular markets. Second, rates have more than doubled from a year ago. Third, while inventory is low, so is the amount of buyers on the market.
It is possible to find a home in the current market, but now more than ever, you’ll need to do your homework, keep an eye on the local market, and take advantage of opportunities when they present themselves.
Mortgage rates continue to chop ahead of next week’s data
The phrase “no news is good news” definitely applies to the national average for a 30-year, fixed-rate mortgage this week. This type of mortgage did drift higher and the national average for a 30-year fixed rate mortgage ended at 6.37% yesterday. That’s up slightly from yesterday, but it was trading in a very narrow range and didn’t see any significant swings. This will likely continue until the next round of inflation data and guidance from the Federal Reserve next week.
What are the experts saying about the housing market in 2023?
A recent feature from Chicago Agent Magazine saw several industry experts, including Guaranteed Rate’s own Executive Director of Capital Markets, Jeremy Collett*, offer their take on housing market in 2023. When asked about what the next year holds for housing, Collett stated, “We can make educated guesses, but rates are hard to predict. The Fed just raised their federal funds rate to 3.75%-4% on November 2, indicating that more rate hikes are coming. We think that this cycle of aggressive rate hikes is coming to an end soon, dependent on inflation coming down.” Collett also said, “What buyers should remember is that they can “marry the home, date the rate.” In other words, find a home they love and be prepared to refinance when mortgage rates come down.”
* Jeremy Collett is Guaranteed Rate’s Executive Director of Capital Markets. Market Updates are designed to provide readers with a high-level yet insightful view of how economic news, events and trends affect mortgage rates and the homebuying process.
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