Mortgage Rates Hit 9-Month High But Could Fall in 2023

Mortgage rates have risen to over 7%, the highest level since November 2022, due to Fed interest rate hikes and a downgrade of US debt.
Higher mortgage rates have led to falling demand, with mortgage applications dropping for three straight weeks.
Experts say rates could remain elevated in the coming weeks but may fall to the 5% range in 2023 if inflation continues to ease.
The housing market is showing signs of slowing due to high rates, with new home sales declining after an initial increase.
While mortgage rates are volatile, home prices are expected to keep rising in 2023, though large drops are unlikely even in a recession.