Sunday, May 8, 2016
Housing Forecast 2016
Recent data released by Freddie Mac, the government sponsored entity (GSE), that insures most home loans, has many experts like Freddie Mac chief economists forecasting that housing will continue it's upward momentum throughout 2016 and in fact, can be an economic engine of growth for the overall economy.
In a statement regarding revised analysis of the overall economy after Freddie Mac published it's April 2016 data, one of their chief economists stated, "we maintain our positive view on housing. In fact, the declines in long-term interest rates that accompanied much of the recent news should increase mortgage market activity,"
For the first quarter of 2016, the 30-year fixed rate mortgage averaged 3.7 percent. After lowering the forecast for subsequent quarters by a tenth of a percent, we should expect rates to average 4 percent in 2016.
On average, house prices should rise by 4.8 and 3.5 percent in 2016 and 2017 respectively. Rising home prices will drive up homeowner equity.
For more info on the recent data visit www.freddiemac.com
For more information on purchasing or selling in Southeast Florida contact me directly at:
GES Real Estate, LLC