Freddie Signing a Different Tune on Housing/Mortgage Outlook

Posted To: MND NewsWire

On November 30, 2016 Freddie Mac's economists issued their monthly Outlook which, in light of the sudden surge in interest rates earlier that month, was decidedly gloomy . MND's coverage of the forecast elicited a lot of concern from readers, especially when we quoted Freddie Mac that, under their new rate and housing expectations, "Mortgage originations (will) get crushed." They predicted a decline in originations of 53 percent from 2016 to 2017. Other predictions at the time included a leveling off of home sales, although "2016 will still end up being the best year for home sales in a decade, but 2017 will be hard pressed to match those levels" with a predicted decrease of 220,000 units Home price gains will moderate, finishing 2016 with an average gain of 5.9 percent, falling to 4.7 percent...(read more)

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