Freddie Mac released its U.S. Economic and Housing Market Outlook for February, looking at the affect short-term interest rate policy changes will have in light of the existing substantial downward pressure currently on long-term interest rates.
Highlights from the Outlook include:
• Forecasts for home sales (5.6 million in 2015) and housing starts (1.18 million in 2015) are unchanged from last month.
• Due to continued strong growth in house prices and relatively low inventories, expect house prices to increase 3.9 percent in 2015, up from our forecast of 3.5 percent last month.
• Raised 2015 origination’s forecast to $1.3 trillion from $1.2 trillion last month
• Revised the average 30-year fixed-rate mortgage rate forecast for 2015 down to 3.9 percent for the year, compared to 4.2 percent last month.