What Home Buyers Can Expect in 2023

Inflation, Housing Inventory, and Interest Rates…Oh My!

A frequent question from folks starting their homebuying journey is “Where will interest rates and home prices be next year?”

While none of us can really answer the question with certainty- there is no crystal ball for the future.

You can make wise home buying decisions by understanding the current mortgage and home sale industry predictions. An educated homebuyer is empowered to make wise financial decisions that can save you thousands of dollars during lifetime of your home purchase.

Bottom Line- Make your financial decisions based on relevant industry predictions rather than rely on mainstream media and outdated information.

Here are four key take aways from recent industry predictions that every homebuyer should know:

1. In 2023 the major indicator to watch is INFLATION. If inflation continues to decrease, then home affordability should improve. Lower inflation will mean lower interest rates. In turn, that means homes will become more affordable.
2. Industry projections expect rates between 5.5% and 6.5% with the most noticeable improvement by early to late summer 2023. Lower interest rate means less monthly payment and makes your dream home more affordable.
3. Again, depending on if inflation continues to slowly decline, the expectation is that home prices will remain flat, or even decline slightly in markets that were overheated in the past two years.
4. Seller concessions, or contribution, towards interest rate buy-downs and closing costs are expected to continue as we reach more equilibrium in the market. If you receive a seller contribution towards closing costs this can save you thousands of dollars.

Richard Blair is a 25- year veteran of the mortgage industry and focuses on educating home buyers to make wise home buying and financial decisions.

Richard Blair NMLS #213176

The Mortgage Picker is a Magnolia Mortgage company NMLS# 1718771