A Silver Lining in the Cloud: Mortgage Rates Ready to Dip
- Barry B
- Jun 8, 2023
- 1 min read
Great news for homebuyers! Mortgage rates are gearing up to drop.
Given the easing inflation and recent banking crisis, the Federal Reserve is unlikely to hike up interest rates further. This means mortgage rates, which have been on a similar upward journey, could start to fall.
"In the short term, rates will stabilize and then gradually decline," says Danielle Hale, Chief Economist at Realtor.com®.
However, rates that slipped under 3% during the COVID-19 pandemic may not return. The average mortgage rate was 6.68% for 30-year fixed-rate loans, according to Mortgage News Daily.
David Stevens, CEO of Mountain Lake Consulting, predicts a dip in rates by year-end. "Expect rates around 5.5%," he says.
The expected fall in rates below 6% could motivate homeowners to list properties for sale, easing the housing shortage and providing more opportunities for eager buyers.
In short, stable and slightly falling mortgage rates spell good news for the housing market. "This will give buyers and sellers a chance to adapt," concludes Hale. Source: Good News for Homebuyers: Mortgage Rates Are Poised To Fall