Mortgage rates could level off this year

Oh, the good old days of November 2012. If you were lucky enough to take out a mortgage then you were likely paying a record low interest rate of 3.35%. Or, if you were cursed by buying a house in 1981, you might be lucky to get an interest rate of 18.5%.

According to a report in Forbes, rates for home loans seemed to be on a relentless climb in 2022, now sitting at double what they were a year ago. But a steady decline in rates the past two months have convinced more economists that rates could level off through early 2023, barring an economic downturn.

The average 30-year, fixed-rate mortgage was 6.15% for the week ending Jan. 19, down from 6.33% in the previous week, according to Freddie Mac. While mortgage rates climbed a bit at the end of December, rates are still lower than last year’s peak of 7.08% on Nov. 10 and Oct. 27 — the highest rate in more than 20 years.

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