Good Monday Morning!

We are now into the second week of the New Year and the national housing market really remains on the same path as 2022. High inflation rates have created a situation where the Fed has needed to increase rates, which in turn has effected mortgage rates. The question that most would be home buyers are asking is, will this trend continue through 2023, or will inflation rates ease and mortgage rates begin to decline? Only time will tell. The signs are that the economy is beginning to slow even further with retail sales down, an increase in job losses, etc. This is exactly what could slow inflation. The wild card here is Federal spending. In order to truly control inflation, the governement needs to stop it's reckless spending habits, which would decrease the amont of money in circulation. The path for this has already been set for 2023 with a record high spending bill being passed. Both the state of the economy and inflation will have signigicant roles on the housing market is 2023. I certainly hope for the best with lower inflation, a decrease in government spending and lower mortgage rates, Time will tell! Here is an article from "Realtor.com" that goes over the current national mortgage situation.

The numbers: Mortgage rates rose in the first week of 2023, as mortgage applications sank to multi-decade lows.

The 30-year fixed-rate mortgage averaged 6.48% as of Jan. 5, according to data released by Freddie Mac on Thursday.

That’s up 6 basis points from the previous week—one basis point is equal to one hundredth of a percentage point.

Last week, the 30-year was at 6.42%. Last year, the 30-year was averaging at 3.22%

Rates are still far lower than they were a month ago, when the 30-year was averaging above 7%.

The average rate on the 15-year mortgage ticked back up to 5.73%.

If rates were to drop, the outlook for the mortgage market in 2023 will be bright, Freddie Mac noted.

“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of millennial renters will provide support to the purchase market,” Sam Khater, chief economist at Freddie Mac, said in a statement.

“Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates,” he added.

Demand for mortgages has fallen to the lowest level since 1996, the Mortgage Bankers Association reported on Wednesday.

Khater expects inflationary pressures in the U.S. to ease, and rates to drop in 2023.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

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AND HERE'S YOUR MONDAY MORNING COFFEE!!