So, what is happening in the housing market, and where are mortgage rates going this year? I get asked this question all the time by many of my clients. The housing market and mortgage rates play an important part in our economy, as they serve as an indicator of the overall economic health of our country. Recently, the housing market has experienced a significant shift due to the increase in mortgage rates in 2023. This shift has had a major impact on the housing market, affecting everything from home buying to shopping for groceries.

As the cost of borrowing increases, it can become more difficult for real estate agents and brokers to sell homes. This is because potential buyers may be less willing to purchase homes when mortgage rates are high. Additionally, some home sellers may be less willing to put their homes on the market when mortgage rates are high, as they may not want to sell their homes for less than they are worth.

Neither the actions of the Federal Reserve nor the recent bank failures directly impact mortgage rates. But rates are indirectly affected on the health of the financial system and any uncertainty.

We have seen a nice drop in mortgage rates in March and housing prices have begun to drop as well. Spring is upon us, which should also bring potential buyers back into the housing market. The Mortgage Brokers Association forecasts that mortgage rates are likely to trend lower over the course of the year, with the 30-year fixed rate landing around 5.3%. We will have to wait and see what happens, one thing is for sure it will be interesting to see.