As most would-be Sedona homebuyers are aware, the Federal Reserve has taken
bold action to reduce inflation. Mortgage rates rapidly increased from record lows
in 2021 to peak at slightly over 7% in the fall of 2022. The rate change was a blow to
many hopeful buyers as it produced a definite hit to their purchasing. In fact, many
buyers hit the pause button on buying a home and have been waiting in the wings
for rate improvements.
I have potentially good news for buyers. Inflation is easing and mortgage rates,
which are already responding, are predicted to drop further during the spring.
Sam Khater, Chief Economist at Freddie Mac:
“Inflationary pressures are easing and should lead to lower mortgage rates in 2023.”
With a new boost in purchasing power, a monthly payment on a home may be
significantly lower. This is great news if you are eager to renew your home search. The lower rates anticipated in 2023 may be just what you crave.
But there is a caveat: If you are waiting for rates to drop to 2021 levels, you’re going to be waiting for a long, long time.
Greg McBride, Chief Financial Analyst at Bankrate, explains: “I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.”
What have we learned?
Lower mortgage rates and less competition may be just the recipe that buyers seek.
But remember, waiting for 3% rates to return is unwise. Call me now, your Sedona
Realtor, to explore the options in the market and learn how today’s rates affect
your goals. I can’t wait to get started! 928-821-1138