Freddie Mac raised its forecast for attracting mortgages for 2021

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This year, Freddie Mac has raised its overall market entry expectations by $ 450 million – even as rising prices are forcing consumers to reconsider their home buying decisions.

“Despite the recent highs in the housing market, there have been signs of declining demand lately. home purchase applications for mortgage data, Freddie Mac chief economist Sam Hather said in a press release.

The government-funded enterprise’s forecast for the third quarter suggests a total of $ 3.93 trillion this year, up from $ 3.48 trillion. three months before. At the latest tally, they totaled $ 4.1 trillion last year, slightly higher than the $ 4.04 trillion projected three months ago.

Its 2021 refinancing forecast is $ 2.16 trillion, up from $ 1.86 trillion three months ago, with the bulk coming in the first half of the year.

Meanwhile, the forecast for purchases was increased by $ 12 billion from the second quarter report to $ 1.78 trillion.

In recent weeks, the bond market has become less worried about recent reports of inflation, which has led to lower long-term interest rates, according to the blog accompanying the report.

Interest rates on the 30-year fixed loan are expected to rise, but this will be gradual, to 3.3% at the end of the third quarter and 3.4% at the end of the year from 3.0% on June 30. will reach 3.8% by the end of 2022. Review of GSE rates for July 15 showed that 30-year FRM by 2.88%.

Freddie Mac predicts $ 2.63 trillion in sales for 2022, higher than the $ 2.39 trillion second-quarter forecast.

According to Freddie Mac, the trajectory of house price increases will outlast any rise in consumer prices as the stock shortage continues. Most of the expected 12.1% price increase for the full year of 2020 occurred in the first half; Freddie Mac is forecasting 1.9% growth for the current quarter, followed by 1.8% growth. Home prices will rise by a relatively modest 5.3% next year.





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