September 23rd, 2017 9:30 AM by Richard T. Cirelli
3 Trends to Drive the Mortgage Market in 2018
It may seem
early for 2018 predictions but Freddie Mac's Economic and Housing Research
Group are out with their forecast for next year.
the economic environment to remain favorable for housing and mortgage markets,
with moderate economic growth of about two percent, solid job gains, and low
mortgage interest rates.
three trends driving the 2018 mortgage market:
They further say: Increases in the volume of purchase
mortgages will be the result of modest gains in both home sales and home price
growth. Thus far in 2017, home sales are the highest in a decade, but are
unlikely to grow by much going forward.
Inventory problems will continue to limit sales in the
short term and longer-term trends like the aging of the population and
declining mobility across all age groups will hold down existing home
Anticipated increases in mortgage rates will slow down
refinance activity. The primary reasons for refinancing are: to obtain lower
rates; shorten the term of the loan; and, to obtain additional cash to remodel,
consolidate debt, or pay off student loans.
Chart of National Home Appreciation Rates 2000 – 2018