Mortgage rates remain elevated in June 2023 but do not reflect on home prices.

With the current national housing mortgage rate as at June 26th standing at around 6.91% for a 30-year fixed mortgage and 6.30% for a 15-year fixed mortgage, rates remained elevated for yet another month in 2023. It’s important to note that mortgage rates can vary depending on the lender, location, and other factors.

Higher mortgage rates tend to dampen housing sales, which in turn should lead to lower housing prices however according to Zillow this was the case on average on a national level. In their latest forecast call they predicted the national Zillow Home Value Index (ZHVI) to end 2023 5% above where it began the year. They attributed this to low inventory in the market.

Further they anticipate the year to end with a 17% decline in home purchases compared to 2022 – mentioning that it was likely due inflated mortgage rates and lower inventory. As such while there may be a national average increase in home prices, the lower sales may start to tip the scales forcing sellers to consider lowering prices. However, the lack of inventory makes this a hard one to predict.

Luckily it’s not all doom and gloom for home buyers. With inflation iin the US trend downwards, reaching 4% in May, down from 6.3% at the start of the year, the Feds may ease up on their consistent rate increases. While 4% maybe a far cry from the Fed’s target inflation of 2%, it nonetheless indicates to the Fed’s that their intervention seems to be working, so there maybe a real possibility of mortgage rates dropping iin the next few months.

Patient buyers maybe rewarded with better prices in the coming months, though likely only towards the fourth quarter. All that being said, any form of investment decision should be taken with care and prudence, and should a great deal present itself now, it maybe worth picking up rather than waiting for a potentially better deal that may never come. There are many factors that impact home prices and mortgages that are hard to forecast, so always stay up to date with the current market and ensure you make the most informed decision possible.

And should you decide to invest in a real estate property, contact us at REI News to discover the most attractive and affordable financing opportunities in the industry. Our experts will help pair you with reliable, affordable lenders who will meet your investment goals.