Freddie Mac’s recent housing forecast shared much needed optimism for the 2014 housing market. Despite the slowed pace of the nation’s housing recovery, and the waning of mortgage refinance activity since 2013, Freddie Mac expressed there are indications that the housing market is transitioning to a purchase market environment.
In 2013, purchase activity increased by “more than 20%.” Freddie Mac Chief Economist, Frank Nothaft “anticipates that more than 50% of the mortgage market will be originations for home purchases by the end of 2014” and argues that “Housing is stronger today an at any point since the Great Recession began and hit bottom in 2009.”
As the year progresses, Freddie Mac expects home sales to rise an estimated 3% throughout the year, housing starts to grow by 20% and home prices to continue rising at a moderate pace. To read more of Freddie Mac’s housing forecast, visit http://bit.ly/1hyV1Br.