The National Association of Home Builders (NAHB) recently predicted that the housing market will continue to decline after the first quarter of 2023. After reaching a 20-year peak at 7.1% during the month of November last year, the average 30-year fixed mortgage rate has dropped to 6.5% at this early point of 2023.

 

Following this initial decline in 2023, the forecasters from the NAHB expect the mortgage rates to continue to decline into 2024 to the point where recovery of the housing market is expected to occur. According to the NAHB, an estimated 1.5 million homes are needed to fulfill the demands of the housing market at present.

The NAHB/ Wells Fargo Housing Market Index (HMI) recorded the single-family housing builder sentiment to have declined every single month of 2022. The score ended 2021 with 83 points and at the end of 2022 the HMI had fallen all the way to 31.

https://www.nahb.org/blog/2023/01/how-and-when-will-housing-rebound