Mortgage Rates Rise Again and One Expert Thinks That'll Continue
“So long, 2022” one of the worst years for rates in the lifetimes of many, Mortgage News Daily said.
What a difference a week makes when it comes to the 30-year fixed rate mortgage, which rose for the first time since mid-November, hitting 6.42% for the week ending Dec. 29.
However, homebuyers, sellers, and housing analysts are more interested in what difference a year makes. And a year ago at this time, the 30-year FRM averaged 3.11 percent.
Entering 2023, Joseph Rubin, senior advisor, EisnerAmper, tells GlobeSt.com he thinks the 30-year mortgage rate will trend higher as the Fed continues to raise the fed funds rate and as they reduce their balance sheet.
Sam Khater, Freddie Mac’s chief economist, said in prepared remarks, “The housing market remains in the doldrums with declining sales, inventory, and prices.
“The declines in sales and deceleration in home prices began swiftly earlier in 2022 but have moderated more recently. While the intensity of weakness is moderating, the market continues to decline, and forward leading indicators suggest housing will remain weak throughout the winter.”
Matthew Graham at Mortgage News Daily said in a blog last week, “So long, 2022! Don’t let the door hit you. You were the worst year for mortgage rates that most of us have seen in our lifetimes in terms of the pace of the rate spike.”
He called 2022 “the bill that came due for the massive housing/mortgage market party that took place in 2021 and much of 2020.”
MBA Reports ‘Slight Improvement’ for Affordability in November
Meanwhile, the Mortgage Bankers Association said November showed a “slight improvement” in affordability for homebuyers, with the national median payment applied for by applicants decreasing 1.8 percent to $1,977 from $2,012 in October.
According to Edward Seiler, MBA’s associate vice president, housing economics, and executive director, research institute for Housing America, said while the median purchase application increased by $2,444 to $297,444, the amount is more than $40,000 below the peak of $340,000 hit in February 2022.
“MBA expects both mortgage rates and home-price growth to moderate, which may encourage additional buyers to return to the housing market in the coming months,” Seiler said in prepared remarks.