The latest projections on interest rates are great news for all of us.
What’s currently going on with the interest rates, and where are they going? Those are the biggest questions I keep hearing lately. In short, mortgage rates are trending downward, and we can say that confidently.
Rates were at just over 6% at the end of last week, and we’ve seen them tick up just a little bit to 6.2% or 6.3%. I have no doubt that we’re in a downward-trending environment where the mortgage rate peaked around the first half of last November. For the last 90 days, we’ve seen almost a full percentage point drop in rates.
“Mortgage rates are trending downward, and we can say that confidently.”
When we think about rates, we think about the 30-year fixed rate. 7% to 7.5% will bring weak buyer demand, and we certainly saw that last summer. 6.5% to 7% will bring limited buyer demand, and at 6% to 6.5%, we are starting to get into good buyer demand. We’ll see strong buyer demand return to the market when we break through the threshold to get into the 5% range.
The big three organizations in this industry (Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors) all have predictions for the rest of the year. These experts believe 2023 will end around 5.5%.
As always, if you have any questions, please reach out to me directly by phone call or email. I would be happy to serve as your resource for all of your real estate needs.
