Wrong Interest Rate Predictions

They weren’t right.  Every year we get predictions on where mortgage rates are going.  Well, I like to see how the economists did, so let’s revisit their predictions for 2023.  To put them in context, a 30-year fixed-rate mortgage started the year around 6.5%, hit 8% in October, and is now around 6.75%.  The Mortgage Bankers Associations had predicted 5.4% and Freddie Mac thought 6.2% was going to be the number.  Fannie Mae was a little higher at 6.5% and the National Association of Realtors simply said “close to 7%.”  So they were all lower than what actually happened with NAR being the closest.  Overall, what I have to say is “better luck next year.”

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