Freddie Mac Quarterly Forecast: The Housing Market Faces Challenges Amid Economic Uncertainty

Written by Customer Service on . Posted in Public Companies.

MCLEAN, Va., April 13, 2020 (GLOBE NEWSWIRE) — According to Freddie Mac’s (OTCQB: FMCC) Quarterly Forecast, housing markets will deviate from their typical spring surge with both home sales and house prices falling due to the COVID-19 pandemic.
“Undoubtedly, the housing market is facing its greatest challenge in over a decade as our nation weathers this unprecedented economic event,” said Sam Khater, Freddie Mac’s Chief Economist. “Although the uncertainty of the crisis means forecasts of economic activity are more unclear than usual, we expect that most of the economic damage from the virus will be contained to the first half of the year. Going forward, we should see a recovery starting in the second half of 2020, though it will take some time for the economy to fully bounce back.”According to the Forecast:The average 30-year fixed-rate mortgage is expected to be 3.3 percent in 2020 and 3.1 percent in 2021.House price growth is expected to decelerate to an annual rate of 0.4 percent in 2020. In 2021, that rate is expected to rise to 0.7 percent.Home sales are expected to decrease in 2020 to 5.1 million homes and increase in 2021 to 6.1 million homes.Purchase originations are expected to decrease to $1,091 billion in 2020 and increase to $1,338 billion in 2021.Refinance originations are expected to be $1,260 billion in 2020 before slowing to $1,032 billion in 2021. Overall, the Forecast expects annual mortgage origination levels to remain at $2.4 trillion in 2020 and 2021.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 CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com 

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.