The rate on a 30-year fixed mortgage will drop to an average 4.5% in 2023, according to a new housing forecast published by Fannie Mae, but that doesn’t mean prospective homebuyers should delay purchases for potentially lower financing costs down the line.
After jumping more than two percentage points since the start of 2022, average rates are expected to be 4.7% and 4.4% in the first and fourth quarters of 2023, respectively, down from 5.2% in Q2, CNBC reports. If rates don’t move as projected, those who hold off on home purchases risk being priced out yet again, especially if home prices remain elevated nationwide.
Personal circumstances and desires should be the primary driver for financial choices; further, such predictions can prove to be wildly inaccurate, he said.
“You could chase better numbers for years on end in some cases if things don’t go your way,” said [Kevin] Mahoney, founder and CEO of millennial-focused financial planning firm Illumint.
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