Mortgage meltdown 2023 is proving to be a boom for renters
Mortgage meltdown 2022 is proving to be a boom for renters.
Pay attention millennials, this is for you. Beginning January 2023, the mortgage agencies that regulate affordable homeownership mortgage loans are eliminating the add-on fees for the HomeReady and Home Possible 1st time homeowner programs. In addition, the maximum income limits are being raised, with lower interest rates and mortgage insurance costs as well.
Already we are seeing signs of improving market conditions for all homebuyers, not just 1st time buyers. Mortgage rates are stabilizing, and home values are flattening in some locations. Gone are the days of competing with multiple offers. The home buying field has evened out giving homebuying shoppers more time and options to succeed.
Experts are factoring all of this into their mortgage rate forecasts for next year. And if we average those forecasts together, experts say we can expect rates to stabilize early 2023. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead (see chart below):
We have seen over the centuries; the benefits of homeownership far outweigh renting for building your net worth. Or as many think of it – renting is making someone else’s mortgage payment for them.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.