By ReviewMyMortgage Admin
Navigating the 2023 Mortgage Landscape: How High Rates and Low Inventory are Impacting Homebuyers
Explore how the current housing market trends are affecting mortgages in 2023. Discover your optimal mortgage program at ReviewMyMortgage.
If you've been keeping an eye on the housing market this year, you're probably aware that it's a tough terrain to navigate. The inventory growth in 2023 has been so slow that it's on track to show negative year-over-year prints. This follows the trend from 2022, which had the lowest inventory ever recorded.
To add to this challenge, new listing data, which was already at an all-time low in 2021 and 2022, is trending at a fresh new all-time low this year due to mortgage rates spiking above 6% in 2022.
Mortgage Rates in 2023: A Closer Look
In terms of mortgage rates, the year has been a series of ups and downs, with rates fluctuating around the 7% mark. This has led to a dip in purchase applications, with four straight weeks of negative purchase application data as rates have hovered around this level.
For context, at the beginning of 2023, expectations were that if the economy remained stable, the 10-year yield range would be between 3.21% and 4.25%, leading to mortgage rates between 5.75% and 7.25%. This forecast has largely held, with rates generally staying within this range.
The Impact of the Banking Crisis
Adding to the complexity of the current mortgage landscape is the recent banking crisis. The crisis has caused a widening of spreads between the 10-year yield and 30-year fixed mortgage rates, keeping mortgage rates higher than usual.
Find Your Way with ReviewMyMortgage
Navigating these uncertain waters can be daunting. But at ReviewMyMortgage, we're here to help guide you. Visit our site to explore your mortgage program options and create a free Shopper Dashboard. With our expertise and resources, we'll help you find your way through the 2023 mortgage landscape.
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