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.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.