What To Expect From the Housing Market in 2023
The housing market in 2023 is likely to be very competitive, with demand for housing outstripping available properties in many areas. Home prices are likely to continue increasing, although at a slower rate than in recent years. Homebuyers may find that financial requirements are stricter, and that qualifying for a mortgage can be more difficult. Renters will also likely find that rental costs remain high, with limited availability of affordable housing. There may also be a shortage of new housing construction, as developers and builders struggle to keep up with the high demand.
What’s Ahead for Mortgage Rates in 2023?
Mortgage rates are expected to remain low in 2023, though they may start to rise later in the year. Rates are tied to the 10-year Treasury bond rate, which is currently at a historically low level. If the economy continues to strengthen, the Federal Reserve could increase the federal funds rate, which would likely cause mortgage rates to rise. However, the Fed is likely to keep rates low for the foreseeable future in order to support the economy.
What Will Happen to Home Prices Next Year?
Home prices are expected to continue increasing in 2023, though at a slower rate than in recent years. Home price appreciation is expected to be higher in some areas than in others. In addition, home prices are largely dependent on the local housing market, so they may vary significantly from one area to another. Homebuyers should consider the current market conditions in their area before making a purchase.