UP up up and away from reasonable buying? When will Mortgage Rates Come Down? Is there a ceiling on mortgage rates? What will happen in 2023? I represent buyers on The Main Line PA who are wondering what is going to happen with mortgage rates. While I am not an economist, I thought I would forward what we in the real estate community know about financing right now and what is predicted by economists to happen with regard to mortgage rates.
The average 30 year fixed mortgage has doubled this year, and in December the rate rose above 7% before coming down to around 6%. Experts are saying this could be an indicator of what we can expect in 2023. According to Ali Wolf, Chief Economist at Zonda,
“The housing market is expected to face continued uncertainty heading into 2023 as consumers, financial markets, and policymakers work through their respective challenges in today’s economy. . . . we are watching for any additional stability in the MBS market, signs of cooling inflation, and/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.” This, of course, leaves us with questions still about how does the battle of inflation affect mortgage rates? Well where inflation starts to taper off, so will mortgage rates. It is a question of when. For many of my clients who are paying in cash and using alternatives to financing this has been a great time to buy and without traditional financing contingencies, buyers are finding themselves with the upper hand. If you are thinking of buying or selling on The Main Line, do not be deterred by the mortgage rate predictions and news. This affects those looking for financing and while cash is not always king in real estate transacting, those buyers who are transacting in cash, will get more of the royal treatment. Please reach out if you would like more information on what is on the market and how my seller strategies can be applied to sell your home for the best price.
