Mortgage Rates Will Fall in 2023

If inflation starts to come down in the Fed pauses or even reverses its rate hikes, I would expect the spread between the 10 year yield and mortgage rates to normalize a bit. Nadia Evangelou, the Senior Economist and Director of Real Estate Research for the National Association of Realtors said there are three likely scenarios in 2023. It means we're just going to have to see what happens with inflation to know which way mortgage rates will head next year.