Econintersect: Freddie Mac has issued its economic and housing forecast for 2014 and 2015 and the outlook is for increasing growth and home sales. The forecast from the Office of the Chief Economist is for an increase in home sales in 2014 of 5% and a further incerase in 2015 of 4%. Housing prices will increase at rates lower than the 10.6% for 2013, 6% in 2014 and 3% in 2015. Real GDP growth in 2014 is projected to be 2.9% and 3.2% in 2015.
Here is the tabulated data and forecasts presented:
Click on table for larger image.
One significant change predicted is a sharp decine in refinancing mortgage activities relative to purchase mortgages. This would produce the first time since 2000 that purchase mortgage activity will rise above 50% of originations.
The forecast also points to an attractive multifamily investment outlook.
Read the full Freddie Mac report.
Source:
- 2014: The Emerging Purchase Market (November 2013 U.S. Economic & Housing Market Outlook, Freddie Mac)
