Will Mortgage Rates Keep Soaring in 2023?

Source: The Ascent — 

There’s a reason so many people wanted to buy a home in 2021. Last year, mortgage rates were quite attractive, and even though real estate prices were through the roof, borrowing rates were low enough to make homeownership appealing.

This year, we’re looking at very different mortgage rates than what borrowers enjoyed in 2021. At the start of the year, the average 30-year mortgage rate was somewhere around 3%. These days, buyers are looking at more like 7% for a mortgage with that same term.

Clearly, that’s a world of difference. And it also explains why mortgage demand has dropped significantly this year. But while we know what mortgage rates look like at present, the big question is whether they’ll keep rising in 2023. And while we don’t have a crystal ball, we can make some predictions.