According to Freddie Mac’s newest quarterly forecast, most of the economic damage from the coronavirus will be felt in the first half of the year. This is in line with other recent economic outlooks. But while Freddie Mac’s Economic & Housing Research Group sees a recovery beginning during the third quarter of this year, they expect the economy to take a while to get fully back on its feet. So what should we expect from home prices and mortgage rates in the meantime? Well, surprisingly, not that much. For starters, the group doesn’t expect much movement from home prices. This is partly due to both the inventory shortage that had already been pushing prices higher and the pent-up demand for homes led by growing numbers of first-time buyers. These factors will help keep prices relatively flat, before they ultimately return to their long-term trend. Similarly, mortgage rates should stay low for the next two years, according to the forecast. “Reduced economic growth will keep inflation in check,” the release says. “Long-term interest rates, including mortgage rates, remain lower over the next two years.” (source)
Outlook Sees Stable Prices, Low Rates Ahead
- Horizen Realty
- April 27, 2020
Foreclosure Numbers Are Nothing Like the 2008 Crash
April 24, 2024
The Best Way To Keep Track of Mortgage Rate Trends
April 23, 2024
What You Really Need To Know About Home Prices
April 22, 2024
Get The Latest Updates
Subscribe To Our Weekly Newsletter
No spam, notifications only about new products, updates.
KEEP READING
Related Posts
Myths About the 2024 Housing Market [INFOGRAPHIC]
When it comes to the current housing market, there are some myths circling around right now.
Is It Getting More Affordable To Buy a Home?
Over the past year or so, a lot of people have been talking about how tough it is to buy a home.
Is It Better To Rent Than Buy a Home Right Now?
You may have seen reports in the news recently saying it’s more affordable to rent right now than it is to buy a home.
Should I Wait for Mortgage Rates To Come Down Before I Move?
If you’ve got a move on your mind, you may be wondering whether you should wait to sell until mortgage rates come down before you