Mortgage Rates Fall as Home Prices Rebound, Spurring Cautious Optimism for Housing Market in 2023

• Mortgage rates continued downward trend, with 30-year fixed averaging 6.61% at end of December

• Home prices up 4.8% nationwide in October compared to a year ago, recovering losses seen in 2022

• Pending home sales unchanged in November compared to October, 5.2% lower than November 2021

• Lower mortgage rates drove increase in inquiries and lockbox openings, signaling more future home sales

• If mortgage rates stay low into 2023, home prices could continue reaching new highs over the next year