Do you aspire to buy a house in 2023? This is how interest rates for mortgages are expected to drop

By Mike Winters -

Homebuyers in the United States in 2023 are expected to see a breather this year, after mortgage rates nearly doubled last year.

Financial analysts estimate interest rates for 30-year fixed mortgages

, according to a forecast by financial services website Bankrate.

This drop is equivalent to 1.49 percentage points compared to the current rate, and almost two points compared to the

This forecast is based on expectations of a slowdown in the economy for 2023, while the Federal Reserve continues to increase its benchmark interest rate to combat high inflation.

With the new increase in active interest rates, those of savings accounts will also rise

Nov 3, 202200:31

Although the Fed has managed to reduce inflation – from a year-on-year high of 9.1% in June to 7.1% in December – it has not yet come close to its goal of bringing it to 2%.

For this reason, the entity anticipates that the rise in interest will continue during the first months of 2023, according to Bankrate.

While raising rates can reduce inflation, by making borrowing more expensive, it also discourages investors.

This can contract the economy, risking triggering a recession causing massive job losses.

And since mortgage rates are highly dependent on the overall state of the economy, they often drop during a recession.

A drop in mortgage rates would be positive news for potential homebuyers.Thomas Barwick / Getty Images

As long as the Federal Reserve remains hawkish and inflation remains high,

before a more substantial decline occurs in the second half of 2023." explained Greg McBride, head of financial analysis at Bankrate, who predicts a "marked decline" in mortgage rates as inflation subsides. 

[The economy added 223,000 jobs in December.

Unemployment fell to 3.5%]

Falling mortgage rates would be positive news for potential homebuyers, as it would reduce the monthly expenses associated with owning a property.

However, the expected decline will be nothing like the rock-bottom mortgage interest rates seen before the pandemic.

In addition,

, so many would-be buyers will continue to be “left out” in 2023, McBride said.