How Does 2023 Look for Refis?

THE ECONOMY

- Demand for employment remained high in November as companies looked for workers to fill positions despite worries of a looming recession.
- Minutes from last month's Fed meeting showed officials were still focused on stamping out inflation but gave few clues about future rate hikes.
- A December reading of the manufacturing sector showed factory activity slowing down. The prices producers paid their suppliers fell.

HOUSING NEWS

- A large drop in mortgage applications last week made headlines. Higher rates were blamed, though apps typically fall some at year’s end.
- Cash-out refinances will cost consumers more in 2023 due to higher fees from the FHFA. Refis still make up almost one-third of mortgage apps.
- Beginning in March, Freddie Mac will require a first lien mortgage to be at least 12 months old before it can be paid off by a cash-out refinance. 

THE LAST WORD

"Efficiency is doing things right; effectiveness is doing the right things." - Peter Drucker