You might want to think twice before waiting for 3% interest rates. Last year, the Federal Reserve took action to try to bring down inflation.
In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021,
peaking at just over 7% last October.
Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press the pause on their plans.
While Sam Khater, chief economist at Freddie Mac, shares that mortgage activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.
That’s potentially great news if you’re a buyer aiming to jump back into the housing market.
Any drop in mortgage rates helps to boost your purchasing power by bringing down your expected monthly mortgage payment. This means the lower mortgage rates experts forecast this year could be just what you need to reignite your home buying search.
After learning this information, are you ready to buy a house in 2023?