Fixed mortgage rates are expected to rise
Diana Heeb Bivona
Recently, the Mortgage Bankers Association released their three year economic forecast. While similiar in overall findings to that of Fannie Mae, here is the reports highlights in relations to residential housing:
- Fixed mortgage rates are expected to rise to about 6.5 percent by the end of 2007 and to remain around that level for the next three years.
- Existing-home sales will decline by about 7 percent and new home sales 8 percent relative to 2006. Both are projected to rebound in 2008 by about 3 percent and a further 1 percent in 2009.
- Existing home price appreciation will slow significantly over the next three years. Median prices for both new and existing homes should remain relatively flat next year and rise about 2 percent in 2008 and 2009.
Source: MortgageNewsDaily
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