Home Price and Mortgage Rate Relief Coming for 2023 Home Buyers

Home price appreciation likely peaked in December 2022 and will slow down in 2023. This will ease some pressure for buyers.

Mortgage rates are expected to fall from 2022 highs into a 5.5-7% range in 2023, improving buyers' purchasing power.

More supply and slower home price growth could convince more sellers to list homes, helping inventory rise.

While growth is slowing, home prices are still up 7.2% nationally and even more in some markets in January 2023.

Unlike the 1980s housing recession, price declines are unlikely due to low supply. Appreciation will stay positive as rates fall.