Mortgage rates have been trending downwards from the high of 7% a couple of months ago to today's rates which have been in the high 5% range to 6%. Whew! This will help buyers who are still dealing with low inventory levels and high prices. With not as much competition, buyers are finding they can make offers and even receive credits from the seller to help them with the financing.
A conventional mortgage at 5.5% for $800,000 on a 30 year loan will have a monthly payment of about $4542. But there are also 7 year ARMS and 10 year ARMS that allow you to fix the rate for the next 7 or 10 years at a rate below 5%. The idea is that when the mortgage rates go down hopefully in the next couple of years, you refinance into a lower fixed rate.
2023 Housing Forecast .... what's in the cards?
The National Association of Realtors just had their Chief Economist Lawrence Yun give his predictions for 2023. He predicts the amount of transasctions will drop down by roughly 7% but the median sales price will INCREASE by .3%. He cites a lack of inventory and not enough housing being built as a main driver for demand from buyers.
"Half of the country may experience small price gains, while the other half may see slight price declines," Yun said. "However, markets in California may be the exception, with San Francisco, for example, likely to register price drops of 10–15%."
Hawaii is a special place and we have our own local market. We continue to see the amount of sales transactions slow but our prices have been stable. To keep updated on the Oahu Real Estate Market keep following me for more up to date trends and information.
To read more about Lawrence Yun's 2023 predictions please see the link below:
https://www.nar.realtor/newsroom/nar-forecasts-4-78-million-existing-home-sales-stable-prices-in-2023
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