Mortgage rates are at historic lows right now but there’s no guarantee they’ll stay there. In fact some experts predict that rates will start to rise again in 2023.
Of course predicting the future is never an exact science and there are a lot of factors that could affect mortgage rates in the next few years. Here’s a look at some of the things that could cause rates to go up or down in 2023:
The economy: Generally speaking when the economy is doing well mortgage rates go up. That’s because when there’s more money circulating lenders can afford to charge higher rates. Conversely when the economy is struggling rates tend to go down. So if the economy continues to improve in the next few years as some experts predict rates could start to rise again.
Inflation: Another factor that can affect mortgage rates is inflation. When prices for goods and services go up so do rates. That’s because lenders need to make sure they’re making enough money to keep up with the rising costs. So if inflation does start to pick up in the next few years as some experts predict rates could start along with it.
The Fed: The Federal Reserve also has a big impact on mortgage rates. When the Fed raises interest rates as it’s expected to do in 2023 mortgage rates usually go up as well. That’s because lenders often follow the Fed’s lead when it comes to setting rates. So if the Fed does raise rates next year as is currently expected mortgage rates could go up as well.
Of course there’s no way to know for sure what mortgage rates will do in the next few years. But if you’re thinking of buying a home it’s a good idea to keep an eye on the trend. That way you’ll be prepared for whatever happens.
Will mortgage rates go down in 2023?
It is not possible to accurately predict mortgage rates for any given year.
However rates are currently near historic lows so it is unlikely that they will decrease significantly in the next few years.
What factors influence mortgage rates?
Mortgage rates are influenced by a variety of factors including the economy inflation and the Federal Reserve.
