Fannie Mae projects Mortgage Interest Rates around 4.5% in 2023

Fannie Mae recently released updated projections for interest rates next year. An average of 4.500% for a 30 year fixed would be an improvement from what home buyers and homeowners have experienced since the jump in interest rates that that happened the second quarter of this year. We have to remember that this is just a prediction and many factors influence the direction of mortgage interest rates.

Fannie Mae is also predicting fewer homes will be available for people to buy. Lack of inventory causes home prices to push higher. If you are considering buying a home, you may not want to wait for potentially slightly lower rates in 2023.

Currently, I’m seeing sellers being more reasonable and the days homes having huge bidding wars seems to have cooled. If we see the level of inventory shrink, we could see the return of the dreaded sellers’ market.

My main point in this post is that I would not hold out for lower interest rates to buy a home if buying a home is something that you have in mind.

If you are considering buying a home, I strongly recommend getting preapproved as soon as possible – even if you are waiting until next year. Getting preapproved early allows you to put yourself in the best position for making a solid offer. It provides you with enough time to make any improvements you may need to your financial scenario (think credit, savings, employment, etc.).  An experienced mortgage professional can help you create a solid game plan even if your home purchase plan is more than a year away.

If you are considering buying or refinancing a home located anywhere in Washington state, where I’m licensed and have been helping people with their mortgage needs for over twenty years, please contact me!

2014 Predictions for the Seattle Real Estate and Mortgage Trends #SeattleREchat

In this year’s final episode of Seattle Real Estate Chat (we’re coming back in 2014!), Jim Reppond and I review 2013 and make a few prediction for 2014 regarding the real estate market and mortgages in the greater Seattle area.

We will resume our regular scheduling of Tuesday mornings at 10:00 am PST for Seattle Real Estate Chat on Tuesday, January 7, 2014.

Thank you for watching our show – I hope you’ll tune in next year. 🙂