“Despite the uncertainties of the pandemic, the housing market performed well in the second half of 2020,” said
Khater continued, “Entering 2021, we anticipate a modest rise in rates that will likely affect refinance originations, which are coming off a remarkable year. We therefore forecast total originations to decline slightly to
According to Freddie Mac’s Forecast:
- The average 30-year fixed-rate mortgage is expected to be 2.9 percent in 2021 and 3.2 percent in 2022.
- House price growth is expected to be 5.4 percent in 2021. In 2022, that rate is expected to decrease to 3.0 percent.
- Home sales are expected to reach 6.5 million in 2021 and decrease in 2022 to 6.2 million homes.
- Purchase originations are expected to increase to nearly
$1.6 trillion in 2021 before dropping to$1.5 trillion in 2022. - Refinance originations are expected to be nearly
$1.8 trillion in 2021 before falling to$895 billion in 2022. - Overall, Freddie Mac’s Forecast expects annual mortgage origination levels to be
$3.3 trillion in 2021 and$2.4 trillion 2022.
MEDIA CONTACT:
703-714-0644
Angela_Waugaman@FreddieMac.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a9d2565d-b8ce-46d5-945a-8fdc89551fe5
Forecast Snapshot
January 2021
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