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Freddie Mac predicts bright future for housing

Posted by Mehran Aram on Tue, Aug 6, 2019 @ 07:08 AM

Mortgage giant Freddie Mac shared last week its monthly forecast on the housing market. In a statement, the government-run corporation, said that low mortgage rates and further gains in the job market will continue to “help sustain the housing market for at least the next year and a half.”

Mortgage rates are forecast to decline even further than they already have, landing at just around 4 percent by 2020 for 30-year fixed-rate home loans. Although savings on borrowing costs will be offset by further increases expected in home prices. Price growth is currently forecast to climb 3.4 percent this year and another 2.6 percent next year.

Freddie Mac purchases home loans from banks and repackages them into mortgage-backed securities that it can then sell to other financial institutions.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.

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Topics: Interest Rates, Housing Market, Freddie Mac, Mortgage rates