The Mortgage Bankers Association, Fannie Mae and Freddie Mac are even more optimistic, predicting 6.5 million and 6.2 million sales, respectively. Others aren?t convinced.Īmazingly, the National Association of Realtors is predicting existing-home sales to eclipse the 5.8 million forecast for 2016, with 6 million sales predicted for the coming year. The prevailing sentiment is that higher rates ? will dampen both home sales and price increases next year?. Homeowners and prospective buyers in overpriced markets like Miami, San Francisco and Los Angeles are likely to feel the burden of higher rates more than most.
With interest rates set to rise to as much as 4.5% in 2017, mortgage rates will rise as well. Unemployment now stands at 4.6%, the lowest rate recorded since August 2007. Now, however, the Fed is ready to move, with the economy creating an average of 188,000 jobs per month in the last year. In the first half of the year, China?s economy went into a slump, then Brexit happened, and none of the 4 proposed interest rate hikes for the year materialized. Will 2017 see more of the same?Īnother narrative for 2016 was the Federal Reserve?s waffling on interest rates. Historically low mortgage rates encouraged the strongest home sales in nearly a decade, despite home prices rising nationwide.
#FREDDIE MAC MORTGAGE PREDICTIONS FOR 2017 SERIES#
From Brexit to the Chicago Cubs winning the World Series to Donald Trump?s election, 2016 wasn?t short on surprises. In many ways, 2016 was an unprecedented year. A recent article on Inman featured 8 real estate experts that shared their beliefs about which direction the housing market would take in the coming year.
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