Without a doubt, the hot property market of the previous three years made it difficult for people to purchase
homes. The 30-year fixed average mortgage rate will rise from 3.22% in January 2022 to 7.24% by October
2022, a significant increase. What changes can homebuyers, homeowners, and property sellers expect in the
next year? higher or lower housing costs Increasing or decreasing mortgage interest rates Or a continuation of
the inflated housing market brought on by the pandemic?
High inflation, tightening monetary policy, and a declining property market are all factors that, in the words of
Fannie Mae, "are likely to push the economy into a small recession in the first quarter of 2023."

Numerous economists predict that although homebuyers shouldn't be concerned about buying in a down market,
property prices will eventually decrease. According to Morgan Stanley, house prices would fall by 7% in 2023,
returning to the level they were in January 2022, which was 32% higher than the price at the start of the
epidemic in March 2020.
Goldman Sachs and Moody Analytics economists forecast 5% to 10% decreases in home values due to a lack of
affordability for homebuyers, slower property sales, a decline in mortgage applications, and an impending
recession, however mild.

According to BusinessInsider.com, the Federal Reserve's overnight rate increases have increased mortgage
interest rates, driving down affordability to new lows, but a recession might cause rates to rise once more.
Spring and summer 2023 would be ideal periods to buy a property because to a combination of this, a decrease
in homebuyer demand brought on by inflation, and sellers dropping their asking prices.

Information sourced from main BHHS

Housing Outlook 2023 (bhhs.com)