Improving America's Housing Stock, One Loan at a time
MCLEAN, VA--(Marketwired - Mar 31, 2016) - Freddie Mac (
Insight Highlights
Quote: Attributed to Sean Becketti, Chief Economist, Freddie Mac.
"Trading up -- and down -- is a time-honored feature of homeownership. However, in the today's market, demand for houses outstrips the supply of existing homes for sale. Growing families may find themselves stuck in houses that are too small, and older homeowners may not be able, or willing, to downsize. In these circumstances, home improvement projects may provide a solution. Cramped families may be able to add a room or two, while retrofitting may allow seniors to age in place.
"Many home improvement and maintenance expenditures are small and paid for out-of-pocket, but about 20 percent of the spending is financed through home loans. Large projects tend to be financed through cash-out refinances or home equity loans. With many millions of homeowners 'underwater,' this source of credit has been limited, but as house prices rise, home improvement lending should rise in tandem. Given strong house price appreciation this year, we expect home improvement lending to increase by at least $5 billion in 2016 relative to 2014, or on net to about $37 billion."
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.