Despite some signs of an economic slowdown, mortgage rates still crept higher for a second consecutive week. And, according to Realtor.com's March housing trends report, the cost of financing a typical house now costs $611 more per month than it did a year ago.
However, while rising interest rates and higher home prices have undeniably taken their toll on homebuyers’ budgets, it looks like there may be relief in sight for buyers as we move further into 2023.
“With the rate of inflation decelerating, rates should gently decline over the course of 2023,” predicts Sam Khater, chief economist of Freddie Mac. “The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.” ...
In addition to the prospect of lower mortgage rates, home prices—currently hovering at $424,000 in March—might also soon be on the wane. For the week ending April 22, listing prices were just 2.4% higher than a year ago. That’s the slowest growth rate we’ve seen since May 2020.
Advertisement
Related Stories
Affordability
Cinnaire Closes $175M Equity Fund to Create or Preserve More Than 1,200 Affordable Homes in the Midwest
To date, the nonprofit organization has closed more than $5 billion in tax credits for affordable housing in 10 states
Insurance
As Insurance Companies Pull Out of Climate-Threatened Areas, Homeowners Reconsider Where They Live
The risk for homeowners is particularly pressing for those living in California, Florida, and Louisiana
Financing
10 States Where Shopping Around for a Mortgage Really Pays Off
In California, homebuyers could see savings of more than $130,000 over the lifetime of their loans