Magazine article Mortgage Banking

Freddie Mac Lowers Home Sales Forecast

Magazine article Mortgage Banking

Freddie Mac Lowers Home Sales Forecast

Article excerpt

Freddie Mac, McLean, Virginia, released its June U.S. Economic and Housing Market Outlook on June 18, and the company said based on a slow start for the year, it was lowering its overall home sales forecast from 5.5 million to 5.4 million.

A press release noted that although purchase applications had picked up in more recent times with the home-buying season fully underway, purchase applications remained 13 percent below last year's level.

Freddie Mac also said it expects fixed mortgage rates to rise gradually during the second half of the year, partly stemming from tapering moves by the Federal Reserve in terms of its net purchases of mortgage-backed securities (MBS). Freddie's forecast calls for the 30-year fixed-rate mortgage to gradually rise and end the year at around 4.4 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac, said, "We're nearly halfway through the year and single-family housing remains weaker than we projected six months ago, while multifamily appears to be right on track. …

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