Housing Market Predictions For 2023: Will Mortgage Rates Go Down?

Inflation that hasn't gone away, rising interest rates, and economic uncertainty have all crept into the housing market over the past year.

Some experts predict 2022 interest rates will remain low. "Inflation is getting under control," says Orchard's CFO Sean Roberts. "The Fed may reduce rate hikes in the future."

Mortgage rates affect how much you pay each month, how much the loan will cost in total, and how much house you can afford.

Since the pandemic, home values have risen. High interest rates make buying too expensive for many would-be purchasers, forcing some sellers to decrease prices.

Roberts says that one good thing about rising mortgage rates is that fewer people will want to buy the same homes.

Most people agree that home prices will go down over the next few months, but it's less clear what will happen after that.

Meyers expects pricing will change in early 2023. He adds, "Second half of 2023 is unpredictable. A lot will depend on mortgage rates and inflation."

The growing population, institutional investors, and the pandemic have led to sky-high material costs, labor shortages, and supply chain difficulties.

Even though the number of homes for sale has grown since the beginning of the year, there are still not enough to meet demand.