MCLEAN, VA–(Marketwired – Mar 31, 2016) – Freddie Mac (OTCQB: FMCC) released today its monthly Outlook for Marchforecastingthat total home sales, housing starts, and house prices will reach their highest levels since 2006 despite inventory and affordability challenges.
- Expect the 30-year mortgage rate to remain very attractive throughout the spring homebuying season, staying below 4 percent until the second half of the year.
- Forecasting that combined multifamily and single-family housing starts will increase 200,000 units to 1.3 million in 2016.
- In 2015, house prices increased about 6 percent on a year-over-year basis. Expect house prices to continue to rise, but at a moderating pace, with annual house price appreciation slowing to 4.8 percent in 2016.
- Increased the full-year 2016 total mortgage originations forecast by $70 billion to $1,650 trillion due to higher expected house prices.
Quote: Attributed to Sean Becketti, Chief Economist, Freddie Mac.
“Housing markets are poised for their best year in a decade. In our latest forecast, total home sales, housing starts, and house prices will reach their highest levels since 2006. Low mortgage rates, robust job growth and a gradual increase in housing supply will help drive housing markets forward. Low levels of inventory for-sale and for-rent and declining housing affordability will be major challenges, but on balance the nation’s housing markets should sustain their momentum from 2015 into 2016 and 2017.”
SOURCE: FREDDIE MAC