Right now, FHA mortgage rates are sitting at an average of about 6.0-6.5%. While this figure is higher than the rates we saw last year (about 3.3% in December of 2021), they’re still lower than they were a couple of months ago.
In September and October, FHA rates climbed above 7% and many would-be homebuyers were forced to put their plans on hold. But now, rates are nearly a whole percentage lower. Is this an indication that FHA mortgage rates are finally coming down? Will first-time buyers finally be able to pursue their dreams of homeownership in 2023? Here’s what you need to know.
Will FHA Mortgage Rates Come Down in 2023?
Before we go any further, it’s important to understand that there’s no way to know for certain what FHA mortgage rates will look like in the future. The housing industry is full of uncertainty. There are multiple factors at play that could affect the future, including the U.S. economy, government policies, and other variables. All that experts can do right now is take their best guess. And unfortunately, opinions are divided on this matter.
Some experts are predicting that rates will drop several percentage points by the end of 2023. Others are saying that the reverse will happen and rates will climb higher. Here’s some feedback from trusted authorities:
Fannie Mae Predicts Rates of 6.8%
In August of 2022, Fannie Mae released a housing forecast report which stated they expected rates to drop to 4.5% by the end of 2023. However, their most recent forecast, which was released in November, says something entirely different. Now, the agency is stating that they expect rates for 30-year fixed loans to average at about 6.8% for 2023, with rates dropping to about 6.5% in the final quarter.
Expert Opinions Remain Divided
Fannie Mae isn’t the only authority when it comes to mortgage rate predictions. Other financial experts also have their opinion on the matter. Unfortunately, there really seems to be no general consensus at this point. Some experts are saying they predict rates to hold steady while others are saying that rates could shoot up as high as 9%.
While opinions are divided as far as mortgage rates, experts do seem to agree on one thing. There’s no need to hold off on a home purchase. Buyers who are interested in purchasing a home now or in the coming months can go ahead and do so, then refinance at a lower rate. The only requirement for FHA loans is that buyers must make at least six months’ worth of payments before refinancing.
Learn More About FHA Mortgage Rates
If you are interested in discussing FHA mortgage rates in further detail, please do not hesitate to reach out. One of our experts will be happy to chat and assist you!