Mortgage Interest Rates Forecast for 2023: What Your Mortgage and Re-Fi Clients Will Want to Know

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February 14, 2023 | By RGR Marketing Blog

2023 Mortgage Interest Rates: Supporting Your Re-Fi Clients

With mortgage rates having climbed faster than anyone expected over the last year, a lot of people looking to buy or refinance a home were forced to put their plans on the back burner. But with the start of the new year, hopes are high that the rates will start receding again, especially now that last year’s high inflation issues have been brought more reasonably under control.

But with the possibility of a modest recession looming on the horizon, what should your mortgage and re-fi clients expect over the next twelve months? Here's where we see mortgage rates heading in 2023 and how that will impact mortgage officers and their clients.

What Are the Experts Saying?

If there’s one consistent thing about the real estate market, it’s that expert predictions are anything but consistent. For example, the spokespersons for the industry’s largest names vary in where they believe the average interest rate will fall for the year. Whereas both the Mortgage Bankers Association and the National Association of Realtors are predicting an average interest rate of 5.7% for 2023, Realtor.com is predicting the rate to average 7.4% for the year. Meanwhile, Fannie Mae, Freddie Mac, and Redfin are predicting average rates of 6.3%, 6.4%, and 6.1%, respectively.

Interest Rates Will Be Driven By Inflation

By now we have seen that mortgage rates are starting out the new year by remaining high, but all signs are pointing to them falling by year-end. With inflation having hopefully peaked, the Federal Reserve has slowed the pace of its benchmark rate hikes, which is one of the tools that the central bank has been using to fight inflation.

As a result, this year we can expect the Fed’s monetary policy to be driven by inflation data. If inflation continues to decline as most expect it to, then the central bank will be less likely to raise interest rates or sell Treasuries. But if inflation doesn’t fall as expected or continues to increase, then we should all expect the Fed to again tighten its monetary policy, which would then cause interest rates to start rising again.

What Your Clients Should Expect From the 2023 Housing Market

So, what will all this mean for your mortgage and re-fi clients this year?

While the rates might come down, home buyers should expect another year of high home prices, making affordability another chief consideration for those wanting to buy this year. In fact, prices will remain so high that they will most likely force a lot of prospects out of the market once again. As such, more affordable markets will see much more activity than usual.

Another challenge buyers will have to deal with this year is that while inventory should improve with more homes being built, there’s still a housing supply issue looming over the market. This will be most evident at the lower price end of the market.

Since the year is starting off with interest rates still high, spring and summer will most likely concede to fall and winter as the latter two will be this year’s busiest buying seasons. This is, of course, because the rates will most likely be at their lowest closer to the year’s end.

This can also be said about your refinance clients. You should expect more of your re-fi business to come later in the year as the rates continue to fall closer to 6%.

RGR Marketing Has Mortgage and Re-Fi Leads That You Can Start Nurturing Today

Before leads convert to clients, there is a certain amount of nurturing that needs to occur. So, the sooner you start nurturing your leads, the faster you will guide them to the place they need to be to make their buying decision.

At RGR Marketing, our mortgage leads consist of prospects who have shown recent increased interest in obtaining a mortgage or refinancing their current loans, which means they are close to making their decisions. Our leads are verified for accuracy and scrubbed to remove any duplicates, incomplete profiles, or invalid data. And your list of leads is exclusive to you.

If you want to start 2023 off on the path to success, then partnering with RGR Marketing is a great place to start. We have more than 20+ years of helping mortgage officers connect with the leads they need to keep their businesses growing. Purchase a list of exclusive mortgage or refinance leads from us and get ahead of the game.

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2023 Mortgage Interest Rates: Supporting Your Re-Fi Clients

What Are the Experts Saying?

Interest Rates Will Be Driven By Inflation

What Your Clients Should Expect From the 2023 Housing Market

RGR Marketing Has Mortgage and Re-Fi Leads That You Can Start Nurturing Today

Start making more
money today!

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2023 Mortgage Interest Rates: Supporting Your Re-Fi Clients

What Are the Experts Saying?

Interest Rates Will Be Driven By Inflation

What Your Clients Should Expect From the 2023 Housing Market

RGR Marketing Has Mortgage and Re-Fi Leads That You Can Start Nurturing Today

Start making more money today!

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