Despite some signs of an economic slowdown, mortgage rates still crept higher for a second consecutive week. And, according to Realtor.com's March housing trends report, the cost of financing a typical house now costs $611 more per month than it did a year ago.
However, while rising interest rates and higher home prices have undeniably taken their toll on homebuyers’ budgets, it looks like there may be relief in sight for buyers as we move further into 2023.
“With the rate of inflation decelerating, rates should gently decline over the course of 2023,” predicts Sam Khater, chief economist of Freddie Mac. “The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.” ...
In addition to the prospect of lower mortgage rates, home prices—currently hovering at $424,000 in March—might also soon be on the wane. For the week ending April 22, listing prices were just 2.4% higher than a year ago. That’s the slowest growth rate we’ve seen since May 2020.