The Daily Real Estate News has just published its housing predictions for the remainder of 2016. The bottom line? Freddie Mac economists remain upbeat about the housing market’s outlook for the rest of the year… which means 2016 is a GREAT year to buy a new home!
“We’ve revised down our forecast for economic growth to reflect the recent data for the first quarter, but our outlook for the balance of the year remains modestly optimistic for the economy,” says Sean Becketti, Freddie Mac’s chief economist. “However, 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, particularly refinance.”
Freddie Mac’s predictions for the remainder of 2016 include:
- The labor market will stay strong. The unemployment rate is projected to drop back below 5 percent for 2016 and 2017.
- Loan originations are estimated to rise by $50 billion in 2016 and reach $1.7 billion. The forecasted boost is a result of low mortgage rates that are fueling a refinancing boom.
- Low mortgage rates should stick around longer. The 30-year fixed-rate mortgage averaged 3.7 percent in the first quarter.
- Home prices will rise by 4.8 in 2016 and by another 3.5 percent in 2017. These rising home prices will lead home owners’ to see more equity gains.
These recent predictions should give comfort and confidence to those searching for a new home. The combination of lower unemployment rates, lower mortgage rates and rising home prices makes it clear that if you want to make a good investment, buying and owning a home NOW is the way to go – contact us today to learn more about how you can find your new home at Elite Homes!