WHAT PAST RECESSIONS TELL US ABOUT THE MORTGAGE MARKET

Whether you follow the economy closely or not, you've probably heard rumors of an impending recession. 

Economic conditions are determined by a variety of factors. So instead of explaining them in detail, we rely on experts and history to see what we might encounter. Fortune explains mortgage rates typically fall during an economic slowdown:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

Mortgage rates are likely to stabilize below last year's peak in 2023. 

The first signs are that inflation is cooling. Rates could fall further if inflation slows further, but the days of 3% may be over. The biggest benefit is that you don't have to fear the word recession in your life. In fact, experts say the recession will be mild, and homebuilding will play a key role in a quick recovery. 

Most people remember the housing crisis of 2008 and think another recession will repeat it. But today's real estate market won't crash, because the fundamentals of the market are different from those in 2008.While history won't always repeat itself, there are lessons we can learn from the past. Based on historical data, most recessions have seen home values ​​rise and mortgage rates fall.

If you're thinking of buying or selling a home this year, get in touch with us for expert advice on what's happening in the property market and what it means for your home buying goals.