Mortgage professionals attending the New England Mortgage Banking Conference last week heard some encouraging news from Freddie Mac’s Chief Economist Frank Nothaft, who predicted that the housing market will pick up in 2015. In fact, Nothaft feels that 2015 will likely be the best year for home sales since 2007.
This sunny forecast is based on strong buyer affordability in many areas, as well as the expectation of rising home prices that will cause more sellers to put their homes on the market. In addition, it is anticipated that the overall economy will strengthen, leading to increased consumer confidence and more household formation – both of which typically result in an improved housing market.
While confident in his belief that housing will strengthen, Nothaft also noted several challenges real estate and home financing professionals will face in the coming year. First is that mortgage rates will continue to slowly rise, hitting 5 percent by the end of 2015. This is still historically low, meaning the greatest impact of rising rates would be on the refinancing market. In addition, it is possible that student debt will continue to impact the ability for Millennials to be approved for a mortgage. As a result, this group, which still desires to own homes, may have to wait slightly longer to get into the market.
Wallingford PA Real Estate – Wallingford, PA 19086
