MORTGAGE RATE FORECAST FOR 2023

Mortgage rates have been on a rollercoaster ride since the beginning of 2023.

Following five consecutive weeks of declines between March and April, mortgage rates rose for two consecutive weeks only to dip again. 

Rates for home loans remain caught in a tug-of-war between high inflation and the Federal Reserve’s actions to rein in inflation, which often indirectly pushes long-term mortgage rates higher.

Though many hope the Fed will pause increases moving forward—or even begin implementing rate cuts—the path remains uncertain amid a volatile economy.

So what’s the best strategy for prospective homebuyers in this uncertain economic climate?

“Be prepared to jump on a dip in rates,” says Robert Frick, ​​corporate economist at Navy Federal Credit Union. “But only if you have a property in mind that fits your budget.”

Here’s how other experts predict market conditions will affect the 30-year, fixed-rate mortgage in the coming months:

• Freddie Mac chief economist, Sam Khater. “With the rate of inflation decelerating rates should gently decline over the course of 2023.”
• National Association of Realtors (NAR). “Forecasts that … mortgage rates will drop—with the 30-year fixed mortgage rate progressively falling to 6.0% this year and to 5.6% in 2024.”
• Mortgage Bankers Association (MBA). “Long-term rates have already peaked. We expect that 30-year mortgage rates will end 2023 at 5.2%.”
• Rinaldi Group president, Stephen Rinaldi.“Rates will begin to slide into the summer, beginning a slow but relatively steady lowering of interest rates.”