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As the year comes to a close it's a good time to predict real estate for the next year!  While is some parts of the county home prices are beginning to be idle, increased worry is being felt throughout the market by both potential Sellers and Buyers. 

Currently a 30-yr fixed Conventional mortgage is at 6.5% as compared to the same period a year ago it was 3.5%.  Currently a 30-yr FHA mortgage is at 5.75% whereas the same period a year ago is 2.75%.   According to an article on bankrate.com, Robert Johnson, a professor of financing at Creighton University's Heider College of Business thinks that by the end of 2023, the Fed will have increased the target Fed funds rate by 175 to 200 basis points from it's current level.  This would in turn roughly equate to a 30-year and 15-year mortgage rates to 8.5% and 7.7%. 

A large source of this increase is due to inflation.  If inflation continues at the current rate or higher it will likely mean mortgage rates will as well.  If rates stay high it could cause home sales to drop by more than 10 percent next year.  Homes that are listed in 2023 will likely no longer go pending in a week and may take more than a 30 days.  The days on market is currently higher than 6 months ago and with rates increasing it is likely the marketing time will also continue to increase in 2023.