Mortgage rates will fall to 4.5% in 2023? That's the estimate from Fannie Mae. Here’s what that means for homebuyers
The Good Brigade | Digitalvision | Getty Images Mortgage rates are projected to decline next year — but that doesn't mean prospective homebuyers should necessarily delay a purchase for the prospect of lower financing costs. The rate on a 30-year fixed mortgage will fall to an average 4.5% in 2023, according to a recent housing forecast published by Fannie Mae, a government-sponsored lender. That dynamic would offer relief to would-be homebuyers who've seen mortgage rates balloon this year. The Federal Reserve started increasing its benchmark interest rate in March to tame stubbornly high inflation, which has resulted in higher borrowing costs for consumers — who may feel a sense of whiplash from 2020, when rates bottomed out near historically low levels. More from Personal Finance: 13 states may tax student loan forgiveness Fewer Americans living paycheck to paycheck as inflation starts to ease How to figure out if you qualify for student loan forgiveness Average rates are exp...