Low Rates, Slower Price Gains Point to Home Sales Bounce

Posted To: MND NewsWire

Freddie Mac's economists see low interest rates continuing, at least through the end of next year . The company's Economic and Strategic Research Group's February Forecast, released on Thursday, also sees more economic growth, albeit at a slower rate, and a bounce back in the housing market. The 30-year fixed-rate mortgage (FRM) averaged 4.6 percent over 2018. After peaking last fall mortgage rates began to decline and by mid-February were at a 12-month low of 4.4 percent. Freddie Mac's economists expect the 30-year FRM to average 4.6 percent in 2019 before increasing to 4.9 percent in 2020. Housing starts averaged a 1.26 million rate in 2018. The forecast is for total starts to increase over the next two years with both single-family and multifamily units gaining each year. Total starts will...(read more)

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