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As 2019 comes to a close, there is growing optimism that 2020 will be a strong year for the U.S. economy, and residential housing in particular.
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Low mortgage rates, growing incomes, low unemployment, healthy consumer spending, and fading recession expectations all point to strength in housing.
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Millennials’ growing financial readiness will continue to power demand for homes, while homebuilders’ ramped-up production will continue to help combat inventory shortages.
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Fannie Mae’s latest forecast was very positive as the 2020 GDP forecast was boosted by .2% to 2.1%.
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Freddie Mac’s economic forecast also projects 2020 home sales to increase from 6M. in 2019 to 6.2M. units next year.
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The Freddie Mac forecast also projects mortgage rates to average 3.8% next year while home appreciation slows from 3.2% in 2019 to 2.8% in 2020.
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RATE UPDATE
With little economic data released last week, mortgage rates held steady through the holiday week.
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THIS WEEK
Pending Home Sales are due out on Monday, Consumer Confidence on Tuesday, and both Jobless Claims and ISM Manufacturing on Thursday.
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Information contained in this document is subject to change without notification. Source: mbsquoteline
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