Home buying forecast: Trends to know in 2023

Source: TB&P — 

The housing market has seen extreme highs and lows this year. Fluctuating home prices and mortgage rates are primarily attributed to inflation, fears of a recession, and the U.S. Federal Reserve’s economic policy. Ever-changing factors make the 2023 housing market challenging to predict. Here’s our forecast; it may surprise you.

MORTGAGE RATES
To fight record inflation, the Federal Reserve steadily increased federal funds rates in 2022, leading mortgage rates to follow suit. Finance company Freddie Mac notes that the average rate on a 30-year fixed mortgage more than doubled to 6.49%. (The pandemic brought record-low interest rates to around 3%.)