Freddie Mac: Not So Upbeat About Economy, But Bullish on Housing
Shared By Sarah Scott | Scott Finn & Associates
Freddie economists predict that the 30-year fixed-rate mortgage will average 4.5 percent in 2019 and increase to 4.8 percent in 2020.
Home price growth likely will continue to slow, researchers note. Freddie is projecting annual home price growth increases of 3.5 percent in 2019 and then 2.5 percent in 2020.
But with demand growing for housing, economists are upbeat that housing construction will increase this year. Total housing starts will likely increase over the next two years, with the most growth coming from the single-family housing segment, according to the report. Total housing starts are forecasted to rise to 1.27 million units in 2019 and to 1.33 million units in 2020. (Read: You’re Even More Vital to New-Home Buyers)
However, while the housing market looks poised to gain steam, the economy overall is showing some signs of weakening compared with a year ago. A decline in consumer spending has lowered economists’ GDP growth rate forecasts for the first quarter of 2019 to 1.2 percent.
Source: Freddie Mac