Mortgage Rates Will Come Down, It’s Just a Matter of Time

This past year, rising mortgage rates have slowed the red-hot housing market. Over the past [nine months](https://www.nar.realtor/newsroom/existing-home-sales-slumped-5-9-in-october), we’ve seen fewer homes sold than the previous month as home price growth has slowed. All of this is due to the fact that the average 30-year fixed mortgage rate has doubled this year, severely limiting homebuying power for consumers. And, this month, the [average rate](https://www.freddiemac.com/pmms/archive) for financing a home briefly rose [over 7%](https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-rise-above-seven-percent) before coming back down into the high 6% range. But we’re starting to see a hint of what mortgage interest rates could look like next year. #### Inflation Is the Enemy of Long-Term Interest Rates As long as inflation is high, we’ll see higher mortgage rates. Over the past couple of weeks, we’ve seen indications that inflation may be cooling, giving us a glimpse into what may happen in the future. The mortgage market is eagerly awaiting positive news on inflation. As Ali Wolf, Chief Economist at _Zonda_, [says](https://www.builderonline.com/data-analysis/a-look-at-the-relationship-between-the-10-year-treasury-and-30-year-mortgage-rate_o): > ###### “_The housing market is expected to face continued uncertainty heading into 2023 as consumers, financial markets, and policymakers work through their respective challenges in today’s economy__. . . . we are watching for any additional stability in the MBS market, signs of cooling inflation, and/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.”_ #### What Does This Mean for the Future of Mortgage Rates? As we get through the inflation battle and start to see that coming down, we should expect mortgage rates to follow. We’ve seen nods of this over the past couple of weeks. As the _Federal Reserve_ works to bring inflation down, mortgage rates will come down as well. Bill McBride from _Calculated Risk_ [says](https://calculatedrisk.substack.com/p/housing-and-inflation): > ###### “_My current view is inflation will ease quicker than the Fed currently expects.”_ As we look toward next year, we certainly hope he’s right. ### Bottom Line Mortgage rates will come down – it’s just a matter of time. The hope is we continue to see more positive news on inflation, and that’ll bring mortgage rates down. This will give prospective homebuyers more buying power and lead to more homeowners throughout the country. Posted by [Ryan Drowne](https://www.thedavidgreengroup.com/blog/author/ryandrowne/) on November 21st, 2022 Enjoy this blog post? Click here to subscribe for updates [Facebook Share this post on Facebook](https://www.thedavidgreengroup.com/blog/httpswwwsimplifyingthemarketcomen20221121mortgage-rates-will-come-down-its-just-a-matter-of-timea713.html# "Share this post on Facebook") Twitter Tweet this post on Twitter [Email Send a link to post via Email](mailto:?subject=Mortgage%20Rates%20Will%20Come%20Down%2C%20It%E2%80%99s%20Just%20a%20Matter%20of%20Time&body=I%20was%20looking%20at%20https%3A%2F%2Fwww.thedavidgreengroup.com%2Fblog%2F%20and%20I%20thought%20you%20would%20like%20to%20look%20at%20this%20blog%20entry%3A%0D%0Ahttps%3A%2F%2Fwww.thedavidgreengroup.com%2Fblog%2Fhttpswwwsimplifyingthemarketcomen20221121mortgage-rates-will-come-down-its-just-a-matter-of-timea713.html "Send a link to post via Email")[](https://www.thedavidgreengroup.com/blog/httpswwwsimplifyingthemarketcomen20221121mortgage-rates-will-come-down-its-just-a-matter-of-timea713/print.html "Opens new window with print ready page") ### Leave A Comment Leave text box empty Full Name\- required Email Address\- required Website Link e.g. yourwebsitename.com Comment\- required Submit Comment Please note that your email address is kept private upon posting. Message us ··· Chatra DG  David Green AS  Alexandra Salmon Ask us anything – we’ll get back to you here or by email. [We run on Chatra](https://chatra.com/?utm_source=logo_f&utm_campaign=US_www.thedavidgreengroup.com&utm_medium=selfie_en_get) reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) - [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) - [Terms](https://www.google.com/intl/en/policies/terms/)