The Home Buying Institute recently gathered real estate market forecasts from reputable experts to comprise their 5 Housing Market Predictions for 2016. Citing sources such as CoreLogic, Freddie Mac, and the S&P/Case Shiller Home Price Index, author Brandon Cornett shared his perceptions on the influencing factors that will drive the housing market in the coming year.
As more jobs are created, the imbalance in supply and demand in many markets will continue to put pressure on home prices. Although home price gains are expected to continue into 2016, increases may be more tempered than in recent years with the exception of some large cities in the West.
Mortgage interest rates will also have an influence on the housing market in 2016. By the end of 2015, mortgage interest rates are predicted to begin rising and are anticipated to gradually increase throughout next year. Quoting Freddie Mac’s latest housing market forecast, Cornett’s article indicates “that the average rate for a 30-year fixed home loan would gradually rise to 4.2% by the end of this year, and 5.1% by the end of 2016.”
To read all of the Home Buying Institute’s forecasts, including the impact student loan debt will have on the Millennial generation’s ability to acquire mortgage credit, visit http://bit.ly/1PgZHuZ.