Are you confused about borrowing in 2023? Hi, I’m Kimmy Rolph and I represent buyers on The Main Line PA and so many of my buyers are asking me, Kimmy, is it a bad time to buy? Let’s talk about what experts are anticipating this year. 2023 is expected to be an interesting year for mortgage rates. 2022 truly was a roller coaster.
At the start of 2022, the average 30-year fixed-rate mortgage stood at 3.3%, due to a rise in inflation and the Federal Reserve’s decision to taper its bond-buying program. However, as the year progressed, mortgage rates began to decline, reaching an average of around 2.9% by December 2022. As we moved into 2023, the Federal Reserve stated that it plans to keep interest rates low for the near future, which could mean that mortgage rates will remain relatively stable. However, if inflation rises again, we could see another increase in mortgage rates.
Despite the potential for fluctuations, the overall trend for mortgage rates in 2023 is expected to be relatively stable, with rates hovering around 3% for most of the year. This is good news for potential homebuyers.
Of course we have to watch inflation. This is going to be the indicator that economists are watching. If inflation remains low, mortgage rates are likely to remain stable. For now it is still a good time to buy. With mortgage rates expected to remain relatively low, homeownership is more affordable and certainly is more stable than renting. Are you a first time homebuyer who is hesitant because of borrowing? I am happy to walk you through your options on The Main Line. Remember that the real estate conditions really are local and we also have excellent referrals for lending.
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