What’s happened so far during the second quarter of the year? Home borrowing costs have fallen from the highs seen last November and prices are falling back to more normal gains. Housing inventory remains relatively low because many borrowers still have first mortgages in the lower 3-4% range. But what’s in store in the coming months?

Fannie Mae says, “While housing demand and home prices have proved more resilient than previously anticipated, it expects sales activity to remain subdued because of the persistently low inventory of homes for sale, particularly among existing homes. Still, strong demand for housing remains supportive of home prices though there is significant regional variation in actual and expected home price movements.”

Let’s look at some of the numbers:

  • The 30-year fixed rate mortgage is forecasted at 6.2% for Q2, 5.8% for Q3, and 5.5% in Q4, Fannie Mae.
  • Total mortgage originations are expected at $1.806 trillion from $2.245 trillion in 2022, Fannie Mae
  • Fannie Mae sees home sales down 20.1% year-over-year to 4.02 million units.
  • The Mortgage Bankers Association also sees declining existing home sales in 2023 as it expects 4.22 million existing home sales, down 17.1% from 2022.
  • HousingWire reports that housing inventory is still near record lows with 2.6 months’ worth of housing inventory.

Bottom line: Numbers paint a picture for the sector and we know… jobs buy houses. Currently, the job market remains tight. If you are secure in your job and feel you can move to a new position if needed, then numbers take a backseat when considering the American dream of homeownership. Although inventories are still on the lower side, many homeowners have found ways to use their homes by way of Home Equity loans or Lines of Credit. For those looking to purchase a home, it’s always a good time to buy. With lower inventories, you’ll want to be prepared ahead of time. Contact your loan advisor who can help with a pre-approval so you’re ready to go.

Source: Mortgage Market Guide

We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.