Where are mortgage rates starting the New Year?
Mortgage rates declined for five straight weeks, but ended 2022 up slightly, and ended the year with a national average rate of just over 6.5% for a 30-year, fixed-rate mortgage.
Tuesday was the first trading day of the year, and the national average started the year by ticking lower on Tuesday. A 30-year, fixed-rate mortgage ended the trading session with a rate of 6.45%, down 0.09%. It was clear that most traders were back at their desks today because volume was at the highest levels since last month’s CPI data release.
While mortgage rates are still more than double what they were at the same time last year, a downward move to start the year could be a positive sign for home shoppers looking to jump back into the market.
Is it possible to get a mortgage with a low down payment in 2023?
The New York Times investigated how home buyers are getting by with higher interest rates, inflated home prices, and not a lot of cash on hand for down payment. There are several options that potential home buyers can take advantage of even if they don’t have a large amount of cash for a down payment.
Several government programs, including FHA and VA, allow for home loans with 3% down payment options. While it may be a challenge to navigate the current environment, there are options that can help.
How did home prices perform in November 2022?
Recently released data from financial analytics firm CoreLogic showed that home prices in November 2022 were 2.5% lower than the spring 2022 peak and are expected to continue to move lower in 2023 before starting to rebound in the fall. Deputy economist Selma Hepp stated, “Although home price growth has been slowing rapidly and will continue to do so in 2023, strong gains in the first half of last year suggest that total 2022 appreciation was only slightly lower than that recorded in 2021.”
Prices in November 2022 were still 8.6% higher on average than November 2021, but it’s clear that prices have cooled off considerably from the peak that was observed in the spring of 2021.
Data also showed that key markets in Florida, South Carolina, and Georgia saw the largest home price gains in November, while Washington DC was the lowest performer with home prices up only 1.2% year-over-year.
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