Are mortgage rates expected to fall through 2023?

Waterfront homes in Fort Myers, FL | mortgage rate news

Which way will mortgage rates head in the final months of 2023?

In a recent interview with CBS News, multiple mortgage experts gave their take on where they think rates will head as we inch towards 2024.

Peter Idziak, a senior associate at Polunsky Beitel Green, said, “If the Fed stops raising [interest rates] because the data shows the economy weakening and inflation coming down further, then I would expect mortgage rates to decrease during the second half of 2023.”

However, Adam Sharif, founder and chief strategist at nxtCRE, was a bit more pessimistic and stated, “If rates go down, it will be next year and not by much. Today’s interest rates are considered normal by historical measures.”

Fannie Mae has also given its guidance on mortgage rates, and have predicted a 6.6% mortgage rate for a 30-year, fixed-rate mortgage.

Which prediction is right? Only time will tell.

Where do swimming pools matter most?

While swimming pools are often seen as a welcome bonus or a must-have for some homebuyers, there are some markets where a pool can impact prices more than others.

When asked about what drives swimming pool demand, national real estate appraiser Jonathan Miller, the president and CEO of Miller Samuel, stated, “If you’re in some community—say in the outer suburbs of Minneapolis—and then you compare that to the suburbs of Miami, in one of those two places a pool is standard equipment. If 99% of homes have a pool, then having a pool is just inherent in the value; but if you’re the one who doesn’t have the pool, then it’s a penalty.”

According to recent data, the Fort Myers, FL metro area saw the biggest ‘swimming pool premium’ with homes with pools getting 20.4% more than homes without. Next on the list was Baton Rouge at 13.9%, and coming in third was Jackson, MS at 11.7%.

Which housing market in California is currently the hottest?

While the Bay Area has cooled off and Los Angeles has been up and down, one area in Southern California has continued to stay hot for home purchases.

According to recent data, of the top 25 hottest zip codes for real estate in California, 10 were in San Diego County. In fact, the 92103 zip code, just north of downtown San Diego, had the highest increase in home value in all of California for the past six months with a 5.7% mark.

“San Diego has been a popular destination for people from both within and outside the state to move to recently,” said Jeff Tucker, senior economist at Zillow. “The city’s desirable climate, beaches, vibrant culture and diverse job opportunities make it an attractive choice for relocation.”

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