MCLEAN, Va., Sept. 30, 2019 (GLOBE NEWSWIRE) -- According to Freddie Mac’s (OTCQB: FMCC) September Forecast mortgage originations will reach $2.1 trillion in 2019 driven by a surge of homeowners refinancing into a lower mortgage rate along with strong homebuyer demand.
Sam Khater, Freddie Mac’s Chief Economist, says, “Despite fears of an economic slowdown, the housing market continues to be a bright spot in the economy. While mortgage rates have ticked up in recent weeks, they remain lower than they were a year ago which will help boost sales headed into the fall.”
Forecast Highlights
- For full year 2019, expect GDP growth of 2.2%, with trade tensions likely having a visible impact on the second half of the year.
- With enormous downward pressure on long-term interest rates around the world, expect the 30-year fixed-rate mortgage to remain below 4.0% for the remainder of 2019.
- The house price forecast remains unchanged and is expected to appreciate 3.4% in 2019, in line with long term growth.
- Despite better than expected housing starts data last month, the single-family housing starts forecast remains unchanged at 870,000 new homes in 2019 and 940,000 in 2020, respectively.
- Given the combination of increased housing demand and a projected upward tick in housing supply, expect home sales to be slightly higher at 5.98 million in 2019, before reaching near-2017 levels in 2020, at 6.03 million.
- With continued low mortgage rates and strong refinance activity, expect slightly higher annual mortgage origination levels of $2.1 trillion and $1.8 trillion in 2019 and 2020, respectively.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac, and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACTS:
Angela Waugaman
703-714-4829
Angela_Waugaman@FreddieMac.com
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