Spring 2023 Housing Market Trends

As the spring housing market gains momentum, many homebuyers, homeowners, and real estate professionals are asking the same questions: Where are mortgage rates headed? Will home prices decline? Is now a good time to buy?

To help answer these questions, the CrossCountry Mortgage team recently sat down with Chris Bennett, Principal of mortgage hedge advisory firm Vice Capital Markets, to discuss current market conditions and what consumers can expect as the housing market continues to evolve.

Here are three important takeaways from the discussion.

Will Mortgage Rates Continue to Fluctuate?

Mortgage rates have experienced significant volatility over the past several years as the Federal Reserve worked to combat inflation through a series of aggressive rate hikes.

According to Bennett, market conditions have improved considerably compared to the uncertainty seen during the previous several months.

"Moving into the second quarter, we have better-functioning markets compared to the past 3-6 months. The market is calmer, consumers are becoming more comfortable again, and buyers of mortgage-backed securities are more comfortable."

As inflation pressures ease and the Federal Reserve approaches the end of its tightening cycle, mortgage markets may experience greater stability. While rates can still fluctuate based on economic data and market conditions, many industry experts believe the most severe period of volatility may be behind us.

For prospective buyers, understanding your financing options and monitoring current market conditions can help you make informed decisions. You can also review available loan solutions through The Polder Group's <a href="https://www.thepoldergroup.com/mortgage-loan-programs-tucson">Loan Programs</a> page.

Were Recent Mortgage Rate Drops Temporary?

Following the collapse of Silicon Valley Bank, mortgage rates experienced a short-term decline as investors reacted to growing concerns about the banking sector.

Bennett noted that after more than a year of aggressive Federal Reserve rate increases, financial markets began showing signs of stress.

"After 12 months of aggressive hikes, the Fed's actions finally broke something, with Silicon Valley Bank becoming the second biggest bank failure ever."

While no one can predict future rate movements with certainty, events within the broader economy often influence mortgage pricing. Market disruptions can create temporary rate improvements, but long-term trends are typically driven by inflation, employment data, Federal Reserve policy, and investor confidence.

Homebuyers considering a purchase may benefit from speaking with a mortgage professional about current rates, rate lock options, and strategies that fit their goals. The Polder Group's <a href="https://www.thepoldergroup.com/rates-zillow">Current Rates</a> page can also help you stay informed.

Will Home Prices Decrease?

One of the biggest questions facing buyers is whether home prices will decline significantly as inventory levels improve.

According to Bennett, housing inventory remains below historical norms, although conditions are gradually improving.

"Inventory is still down, but know it is getting better."

Limited inventory continues to support home values in many markets, including Tucson and Southern Arizona. While some local markets may experience modest price adjustments, housing supply remains an important factor influencing affordability and competition.

For buyers, this means opportunities still exist despite higher rates compared to previous years. Programs such as <a href="https://www.thepoldergroup.com/down-payment-assistance">Down Payment Assistance</a>, FHA loans, VA loans, and conventional financing may help make homeownership more attainable depending on eligibility.

How to Track the Housing Market

Whether you're buying, selling, or simply monitoring market conditions, staying informed can help you make better real estate decisions.

The National Association of Realtors regularly publishes updates on:

• Existing home sales
• Housing inventory levels
• Median home prices
• Market trends by region
• Buyer and seller activity

Comparing housing data month over month and year over year can provide valuable insight into how your local market is performing.

In Southern Arizona, market conditions can differ from national trends, making local expertise especially important when evaluating opportunities.

Why Working With a Local Mortgage Professional Matters

Every buyer's financial situation is unique. Whether you're purchasing your first home, upgrading to a larger property, renovating an existing home, or exploring refinancing options, having a knowledgeable mortgage professional on your side can make a significant difference.

A local loan officer can help you:

• Understand your financing options
• Compare available loan programs
• Review down payment requirements
• Estimate monthly payments
• Navigate changing market conditions
• Develop a strategy based on your goals

If you're planning to buy a home in Tucson or anywhere in Southern Arizona, reviewing The Polder Group's <a href="https://www.thepoldergroup.com/loan-process">Loan Process</a> and <a href="https://www.thepoldergroup.com/buy">Home Buying Resources</a> can help you prepare for the next steps.

Frequently Asked Questions

Is now a good time to buy a home?

The right time to buy depends on your financial situation, long-term goals, and local market conditions. While mortgage rates and home prices fluctuate, many buyers find opportunities by focusing on affordability and available loan programs rather than trying to perfectly time the market.

Will mortgage rates continue to fall?

Mortgage rates may move up or down depending on inflation, Federal Reserve policy, economic growth, and investor demand for mortgage-backed securities. No future rate movement is guaranteed.

Are home prices expected to crash?

Most housing experts do not anticipate a widespread housing crash due to ongoing inventory shortages in many markets. However, local market conditions can vary significantly.

Should I get pre-approved before house hunting?

Yes. A mortgage pre-approval can help you understand your budget, strengthen your offer, and identify potential financing options before beginning your home search.

Ready to Explore Your Home Financing Options?

Whether you're buying your first home, moving to a new property, refinancing, or simply exploring your options, The Polder Group at CrossCountry Mortgage is here to help.

Our team serves homebuyers and homeowners throughout Tucson and Southern Arizona with personalized mortgage guidance, competitive loan solutions, and local market expertise. Contact us today to discuss your goals and discover financing options that may fit your needs and eligibility.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.