Where Are Mortgage Rates Headed?
Will mortgage rates continue to drop this year?
As the housing market continues to fluctuate, many watchful eyes turn toward interest rates. The mortgage rate a buyer receives for their loan can make a substantial difference in their home budget, whether they’re looking for an existing home or whether they’re building custom with Atmos. Buyer behaviors are greatly impacted by interest rates. Likewise, the higher mortgage rates of the last year have made sellers less likely to move out of fear that they’d end up paying much more in interest with a new loan.
In 2022, we saw interest rates rise steadily throughout the year with a peak in early November. Now, they seem to finally be coming down. What’s the latest, and what can we expect in 2023?
Current Mortgage Rates
The interest rate you receive for your home mortgage will always depend on a variety of factors, including your credit score. On average, the interest rate for a 30-year fixed mortgage sits at 6.39%, according to Mortgage News Daily. For a 15-year fixed mortgage, the average interest rate is currently 5.45%
While these numbers are substantially higher than the 4.02% 30-year and 3.29% 15-year rates of a year ago, they’re also lower than the rates we saw in October and November of 2022. Overall, interest rates for home mortgages are on a downward trend.
What’s Next for Mortgage Rates?
Although interest rates appear to have peaked for now, many hopeful buyers and potential sellers are still understandably wary. Will they spike again soon? Is it worth planning for a future purchase? Is it safe to list a home for sale and reenter the realm of buyers?
Fortunately, mortgage experts predict that mortgage rates will continue to fall this year, pushing below the 6% average mark and staying low.
Whether you’re searching for an existing home or beginning a journey to build custom, keeping an eye on mortgage rates is an important part of the process. When you work with Atmos, your dedicated team will help keep you updated on the latest mortgage implications. Get started on building your custom dream home today!
