Fannie Mae predicts fixed mortgage rates will fall to 4.5% in 2023.

By The Exchange Team

Mortgage rates are expected to fall next year, but that doesn't mean buyers should wait.

Fannie Mae, a government-sponsored lender, predicts a 30-year fixed mortgage rate will fall to an average 4.5% in 2023.

This dynamic would provide solace to would-be homebuyers who have seen mortgage rates rise this year.

The Federal Reserve started raising its benchmark interest rate in March to control high inflation, resulting in higher borrowing costs for consumers.

A slight increase in mortgage expenses might result in greater monthly payments, more lifetime interest, and a smaller loan.

How it affects your wallet?

HSH gives this example: A $300,000 mortgage at 3.5% interest would cost $1,347 per month and $185,000 over 30 years.

At 5.5%, homeowners would pay $1,703 per month and almost $313,000 in interest for the same loan.