Several experts and organizations have revealed mortgage rate the percentages they think we will face in 2023 and 2024; some are more promising than others. For example, the Mortgage Bankers Association projects that the average 30-year fixed mortgage rate will be 5.2% in 2023 and decline to 4.4% in 2024 and 2025. Bank of America revealed similar calculations. “Mortgage rates likely peaked in 2022 and historically wide 30-year mortgage rates and the 10-year Treasury yield spread may narrow through 2023,” Bank of America researchers wrote in January. . “Our structured products team expects the 30-year mortgage rate to decline to around 5.25% in 2023 as spreads normalize with lower Treasury volatility.”
However, others are not so optimistic, such as Moody’s Analytics, which estimates that the average 30-year fixed mortgage rate for 2023 will be 6.5%. Goldman Sachs also predicts that we will see this rate at the end of the year. “The rapid decline in mortgage origination, particularly refinances, has caused some lenders to pull back or reduce lending,” Goldman Sachs researchers wrote in late January. “This has the potential to allow remaining lenders to increase their margins by pushing mortgage rates higher” (via Fortune).