I think 2023 is going to be an interesting year for the housing market. Interest rates have gone down a little and at the same time mortgage applications are on the rise.
“US Mortgage Applications Jump the Most since 2020 Mortgage applications in the US surged 27.9% in the week ended January 13th 2023, the biggest jump since the first week of March 2020, as interest rates dropped to the lowest level since September, data from the Mortgage Bankers Association showed.”
The demand for housing remains high. Interest rates will likely go down further but we probably won’t see 3 or 4% again for many years. Home prices will probably level out a bit but at this point in downtown Boston, they are still rising.