Source: The Motley Fool —
There’s a reason so many potential home buyers have struggled to become property owners this year. Between limited inventory and soaring home prices, affordability issues and a lack of choices have forced many buyers to pause their house-hunting plans.
Compounding the issue is an unwanted uptick in mortgage rates. Last year, borrowers with solid credit could snag a 30-year mortgage at around or even below 3%. In September, rates have been hovering in the upper 5% range, and it doesn’t seem like they’re about to drop back down to 2021’s levels anytime soon.
But while we know what mortgage rates look like today, figuring out what they’ll look like in 2023 is a bit tougher. At this point last year, a lot of people were making predictions about mortgage rates potentially topping out at the 4% mark in 2022. And now we know those predictions were clearly way off.
As such, it’s really difficult to put a number on what mortgage rates might look like come 2023. But what we can do is discuss the factors that could cause them to rise — or fall.
