Commercial real estate performed well overall in 2022. However, this year will be challenging for most commercial real estate market sectors, with higher vacancy rates in the office and multifamily sectors.
The rate on a 30-year fixed mortgage dropped to 6.15% from 6.33% the previous week.
The average rate on a 30-year fixed mortgage fell to 6.33% from 6.48% the previous week.
The latest consumer price inflation of 6.45% in December is in the sixth consecutive month of deceleration after peak inflation of 9.1% in June 2022.
There were 223,000 net new jobs in December 2022, and the unemployment rate is at a historic low of 3.5%. Wage growth over the past 12 months was 4.6%.
The 30-year fixed mortgage rate rose to 6.48% from 6.42% in the last week of 2022. Although rates are more than double a year ago, rates will likely stabilize below 6% in 2023.
November 2022's housing market activity declined 7.7% from October 2022, and by 35.4% from November 2021, marking ten consecutive months of home sales declines.
The 30-year fixed mortgage rate decreased to 6.27% from 7.08% six weeks ago. As a result, homeownership has become nearly 10% more affordable in the last six weeks as the monthly mortgage payment decreased to $2,140 for the median-priced home.
Compared to the prior month, the monthly mortgage payment increased by 7.3% while the median family income increased by 0.9%, making home buying less affordable in October.
According to Freddie Mac, the 30-year fixed mortgage rate fell to 6.31% from 6.33% the previous week.
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