Housing Market Remains Economic Bright Spot
Freddie Mac's most recent forecast is good news for anyone concerned that there's trouble ahead for the housing market. That's because, despite recent reports of a potential economic slowdown, the market is well-positioned to remain strong. Why? Well, Sam Khater, Freddie Mac's chief economist, points to mortgage rates as one factor stirring interest in buying a home. “Despite fears of an economic slowdown, the housing market continues to be a bright spot in the economy,” Khater said. “While mortgage rates have ticked up in recent weeks, they remain lower than they were a year ago which will help boost sales headed into the fall.” In addition to low mortgage rates, there is evidence that more new homes are being built. And the additional supply should help keep home prices from spiking. Already, home price increases have slowed significantly. According to the forecast, prices are only expected to be up 3.4 percent in 2019, which is in line with long-term growth. In other words, affordability conditions are expected to remain stable for the foreseeable future and, with more homes available to buyers, Americans looking to buy a home will have more homes to choose from and fewer worries about rising costs. More here.