hey everybody it's Al Esposito Guaranteed Rate affinity and your favorite mortgage lender this week I really just want to dive into some numbers and stats that I think are important moving into the real estate market come 2023. as we know the FED raised rates quite a bit in 2022 the FED fund rate and yes where it correlates it doesn't directly impact mortgage rates but for sure inflation does so the FED said hey we're going to keep raising rates until we get this inflation under control and they've done a fairly good job to be honest with you getting it under control we're not where we need to be to get that inflation rate of their goal of 2.0 but we will get there at some point next year and the good news is the FOC came out and basically stated that hey we believe the FED is going to slow down these rate hikes we're going to give inflation under control and we'll see much better interest rates down the road one of the things that I want to call out on this particular um article is that the MBA MBA is forecasting a recession for the first year of 2023 first half excuse me as full impact of these rate hikes absorbed through the economy as such where we're forecasting the federal fund rate not to exceed five percent in 2023.
They basically said that they were absolutely going to exceed five percent and that is change now here at the end of the year for the more weaker growth and typical leads to long-term interest rates including including mortgage rates we are forecasting that mortgage rates on a 30-year loan which are around 6.4 as of this week will expectually go down and drift down around 5.2 here's the good news guys we're going to see much better interest rates at some point it could be June it could be August it could be March we don't know but it's still a good time to buy if rates are six six and a half percent much better than the seven range so what I'm trying to get out to everybody is that we can always refinance if you buy a house right now and close in February and rates go down in August let's refinance you down to five and a quarter five and a half percent it'll be a huge impact because they believe that housing is going to go up quite a bit in 2024.
so it's all about getting information out right now if you have any questions about anything I just said I am always reachable at 908-531-8134 I hope this information as I mentioned was helpful and I look forward to helping you in 2023..
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