Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% last October. Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.
Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, shares:
“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”
We feel this “buying season” for homes is shaping up to be one of the best in years with buyers looking to take advantage of the still low interest rates and sellers expecting to get the highest prices for their homes as inventories are still low and home prices are still rising. Look no further than Fannie Mae for substantiation of this confidence in housing.
Americans More Confident in Housing Than Ever Before
Americans are more confident about their housing prospects than ever before, with more believing now is “a good time” to buy or sell a home, according to the just-released Fannie Mae Home Purchase Sentiment Index® (HPSI), which hit high point after high point in February.
“The latest post-election surge in optimism puts the HPSI at its
