Wednesday, November 19, 2014 / by Nicole Solari
2015 Housing Market Predictions
Hey folks, this is great news, I am very happy to see that home values and home sales are trending upwards, but not too fast! Here's the 2015 predictions from Freddie Mac.
Outlook Highlights
- Expect to see interest rates climb throughout 2015, with yields on the 10-year Treasury averaging about 2.9 percentage points, up from about 2.6 percentage points in 2014, and rates on the 30-year fixed mortgage gradually climbing, averaging 4.6 percent and rising to 5.0 percent by the end of next year.
- Projecting annual house price gains to slow from 9.3 percent in 2013, to 4.5 percent in 2014 and 3.0 percent in 2015. Continued house price appreciation and rising mortgage rates will dampen homebuyer affordability. Historically speaking, that's moving from very high levels of affordability to high levels of affordability.
- Forecasting total housing starts to increase by 20 percent from 2014 to 2015 and expecting to see total home sales to increase by about 5 percent over that time period to the best sales pace in eight years.
- Expect single-family originations to fall an additional 8 percent from 2014 to 2015 to $1.1 trillion annualized as increases in purchase-money lending are insufficient to offset a drop in refinance. Refinance is expected to make up just 23 percent of originations in 2015.
- Multifamily mortgage originations have risen about 60 percent between 2011 and 2014, and further increases in volume are anticipated in 2015, up about 14 percent in 2015 over 2014.
Nicole Solari, Realtor®
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