The 2022 Q4 Gardner Report just came out so we wanted to share our quick thoughts on what this means for mortgage rates for the upcoming year. Matthew Gardner is Windermere’s Chief Economist and releases his regional analysis every quarter. (The report included below is for NW Oregon and SW Washington.)

“Rates rose dramatically in 2022, but I believe that they have now peaked… If inflation continues to fall, as I expect it will, rates will continue to drop… While this may be good news for home buyers, rates will still be higher than they have become accustomed to.”

The days of 3% interest rates seem to be firmly in the past, so there doesn’t seem to be a good reason to wait to buy! We should be seeing interest rates dip below 6% in the Spring and Summer, so we recommend getting your financial ducks in a row now. Although we are not in a buyer’s market, we have seen a shift where buyers are able to get homes for the list price or lower and get repairs and closing cost contributions.

“My current forecast is that mortgage rates will trend lower as we move through the year. If inflation continues to fall, as I expect it will, rates will continue to drop. The market is, without a doubt, closer to balance than it has been in over a decade. As such, I have moved the needle as close to the balance line as we have seen in a very long time.”

Buyers have more homes to choose from than they have seen since 2019. Buyers, let’s get ahead of the competitive spring market and get you out shopping now as interest rate continue to drop.

As always, if you have any questions about the market for the upcoming year, don’t hesitate to reach out!