| Bankrate.com
With interest rates roughly doubling from their lows in early 2022, it’s a fair assumption that the cost of financing a home won’t be coming down this year. But how about across 2023? Is there any light at the end of this dark tunnel? Rick Sharga, executive vice president of Market Intelligence for ATTOM Data Solutions, which analyzes real estate and property data, is more hopeful. He posits that rates peak at about 8 percent and 7.25 percent for 30-year and 15-year loans in early 2023, “then gradually come down over the course of the year somewhat to hang in the range of 6.0 percent and 5.25 percent, respectively.
Listings may no longer go at a lightning-fast pace, either. “Days on the market have been climbing back toward more normal levels recently, and we could see them approach 30 days or more in 2023 as the market continues to cool down,” he says. “Some of the more expensive markets will potentially see larger declines. Limited inventory, strong credit quality among current mortgage holders, and demand from young adults looking to become homeowners should help prevent prices from falling even further,” continues Sharga.For two years, it’s been a seller’s market.