2020 and 2021 were tremendous years for homebuyers and refinancers, with near record setting lows for mortgage rates across the country. As we’ve begun 2023, the question on everyone’s mind has become: what will we see within the next year in regard to the fluctuating interest rates?
In 2020, mortgage rates were some of the lowest we’d seen in over 3 years. They ended up being better than anyone expected or predicted. The housing market stayed strong, and there was also an increase in housing construction. For those who looked to buy or refinance in 2020, they were met with some great options for low rates for a variety of loan programs.
Because of the low rates, there was an increase in the number of refinances as the year progressed. Some borrowers were able to lower their current mortgage loan rate as much as 2-3%. Overall, 2020 was a superb time to buy or refinance a home, and borrowers were taking advantage of the low rates as the year started to come to an end.
Mortgage Rates of 2021
For the mortgage industry, 2021 was a record-breaking year with some of the lowest mortgage rates seen in years. It was the perfect year for homeowners to find their dream home, or even refinance their current. 2020 and 2021 will go down as a time in historically of the lowest mortgage loan rates across the board. Although rates dropped, we started to see the drop of housing inventory towards the end of 2021, which made it a struggle for homebuyers to find their dream home.
Mortgage Rates of 2022
In the beginning of 2022, we started to see mortgage rates gradually rise as the housing inventory started to tighten. You started to see less houses on the market, and everyone was wondering when we were going to see a turn around. Many predictions were being made, and no one was sure what the next couple of years were going to look like. 2022 was a rough year for any homebuyer, but 2023 is already looking promising.
Mortgage Rates Forecast for 2023
Are you wondering when we will see the turnaround from 2022? This year, 2023 may be the year we start to see a turn for the better. As we are getting into springtime, we are already seeing more houses start to pop up on the market. While housing inventory lasts, this is the time to lock in that rate and buy the dream home you are wanting. Although home loan rates may be on the higher side right now, you don’t want to miss out on the purchase of your dream home.
The fear of buying a home has been on many minds. If you decide to buy a home in 2023, you will have the opportunity to refinance later if rates do drop. So, marry your dream home, and date the rate, and know that USA Mortgage will have your back! If you are thinking about refinancing your current mortgage, or buying a new home, reach out to a mortgage loan officer today to talk about rates. They can let you know what the best programs are, and make sure you are getting the best deal possible.