Mortgage Interest Rates
The rise and fall of mortgage interest rates has played a significant role in the housing market. Mortgage interest rates directly impact a family’s ability to purchase a home and what their buying power is. Over the course of the last year, mortgage rates have hit a 20 year record high. As your local Ventura County realtor and real estate team we are seeing current 30-year fixed rates coming in at 7.08%. This is more than double what interest rates were at the end of 2021.
As we enter 2023, industry specialists predict that we will observe a leveling off effect throughout the coming year. The significant industry spike was a result of the federal reserve hiking its federal funds rate six times throughout this year. This was due to an effort to get a handle on the rising inflation. First time home buyers are expected to account for a large portion of the housing market demand in the near future. Since there is a significant lack of new construction in our particular area this is straining the market when it comes to entry level homes. Luckily for first time home buyers, prices are set to level off over the next year. However, this won’t impact the inventory issue. Despite the lack of inventory, prices starting to level off will create a more welcoming environment for first time home buyers than the past year has brought.
Most experts expect mortgage interest rates to lower to around 5.4% by the end of 2023. This decrease in interest rates and slowing of home price growth will allow household incomes to catch up. As your local Ventura County realtor and real estate team, we are here to help you interpret this information as it applies to your specific situation. As always, if you have any questions, please reach out to us at any time.