Mortgage rates will spend the rest of the year moving mostly sideways,
"Under our baseline scenario,
Starting last month,
In their prior forecasts, including for May,
With mortgage rates staying in that 6% range that put most people out of the money to refinance unless for need, that part of the market should remain muted for the rest of 2023.
This week's Primary Mortgage Market Survey, based on applications submitted to Freddie Mac's Loan Product Advisor automated underwriting system, put
"On the home purchase side, we expect mortgage originations to stay flat this year," Freddie Mac said. "Purchase originations will start to strengthen later this year as home sales stabilize, and they will resume modest growth in 2024."
Home sales should remain negatively affected by high mortgage rates and the slowing economy. But a bright spot so far this year is the entry-level segment.
"Despite the substantial affordability challenges,
To support its argument, the government-sponsored enterprise pointed to the below-median family income
Over the same time frame, the above-median income rate increased just 0.8 percentage points.
"As of the first quarter of 2023, 87% of the 3.1 percentage point increase in the overall homeownership rate since 2016 can be attributed to the growth in the below-median family income homeownership rate," Freddie Mac said.