Mortgage interest Rates are currently on a downward trend, so what could this mean for 2023?
We saw one of the hottest real estate markets in 2020 and 2021 where sellers had all the power, and in 2022 that power quickly shifted to buyers. Homeowners who purchased prior to 2022 likely have mortgage interest rates of 4% or less with many in the 2% and 3% range. It’s wild to think that in one years time, average interest rates have more than doubled.
At the same time, we are celebrating that the average mortgage rates are no longer in the 7% range. If mortgage rates continue on a downward trend and it sticks around for any duration of time, sellers will begin to gain some power back. The quick rise in mortgage rates has stalled out most of the market but at a certain point in time, it will kick back into gear, maybe when the average rates are in the mid 5% range.
If I was a buyer in this market, I would make sure to be ready for the right property by having a current pre-approval in hand. We can help you with that, contact us at Bear Flag Home Loans to get you started with your pre-approval.
Sellers need to come to the market with a clear plan and selling strategy, one of our agents can help you with that. Affordability is still a big factor in the rental market has started to soften.
With so much change since 2020 and so many economic conditions to consider, don’t go at it alone. Give us a call and let us be your resource for all things real estate.
Take a look at the January 2023 Residential Housing Market video by clicking here.