Mortgage originations will reach $2.1 trillion in 2019 driven by homeowners refinancing into a lower mortgage rates and strong homebuyer demand, according to Freddie Mac’s latest forecast.
Freddie Mac also forecasts 30-year fixed-rate mortgages will remain below 4 percent for the remainder of the year, and house prices will appreciate 3.4 percent in 2019.
“Despite fears of an economic slowdown, the housing market continues to be a bright spot in the economy,” Freddie Mac Chief Economist Sam Khater said in a release. “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.”
According to its forecast, Freddie Mac anticipates single-family housing starts to reach 870,000 new homes in 2019 and 940,000 in 2020. Its forecast expects home sales in 2019 to surpass 5.98 million, before reaching near-2017 levels in 2020 at 6.03 million.
For 2019, Freddie Mac forecasts GDP growth of 2.2 percent, with trade tensions likely having a visible impact on the second half of the year.