2023 Housing Market Forecasts From The Experts

Dec 15, 2022

7-minute read

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An aerial view of a residential area in Toronto, Canada.

Even at the best of times, it’s hard to predict the housing market and where it’s headed. In the past year, historically high levels of inflation have forced the Federal Reserve to raise the benchmark for the federal funds rate rapidly, leading to higher mortgage rates. At the same time, low inventory has kept prices high.

Rapid changes in conditions make it hard for people to predict what’s coming next. Nowhere is this better illustrated than in the expert forecasts we’ll take a look at in this post. The crystal ball seems cloudy at best. We’ll take a look at three housing market predictions and what it all means for you.

2023 Housing Market Forecasts

In compiling this roundup, we looked at three major sources of data and forecasts on the housing market: the Mortgage Bankers Association (MBA) as well as the government-sponsored enterprises, and major backers of conventional loans, Fannie Mae and Freddie Mac.

We decided to focus on three specific pieces of data that have a major impact on movement within the housing market. These are housing starts, home prices and mortgage rates. Each section will have a brief overview of why it’s important, where we ended up in 2022 and what the experts think we can expect in 2023.

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