How Affordability Affects Housing's Spring Season
MCLEAN, VA--(Marketwired - Mar 28, 2017) - Freddie Mac (
Outlook Highlights
Quote: Attributed to Sean Becketti, Chief Economist, Freddie Mac.
"Recent indications of stronger growth convinced the Federal Reserve to raise the Federal funds rate this month and to signal further increases later this year. These Fed actions are unlikely to derail the moderate improvements in growth and employment, but rising interest rates will reduce mortgage originations and put a cap on house sales in 2017. As we approach the spring homebuying season, housing will be financially out of reach for many buyers because they will be competing in an environment of tight inventory, rising house prices and rising mortgage rates.
"Additionally, based on our analysis of 2016 refinance activity, markets with the largest increase in house prices also experienced a high share of cash-out refinances. For example, in the Denver and Dallas metro areas the refinance cash-out share was above 50 percent for all borrowers who refinanced last year."
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 and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
Contact Information:
CONTACT:
Chad Wandler
703.903.2446
Chad_Wandler@FreddieMac.com