mortgage
Balance home and money, home loan, reverse mortgage concept : A man hand put us dollar money bag into scales on table with green nature as background. Savings, investment, loan for plan in the future.

Housing market forecast solid in 2020 ‘favorable environment’

Credit unions can look ahead to solid lending opportunities in real estate for the coming year based on Freddie Mac’s December Forecast. Data shows the housing market will continue to stand firm as home sales increase from 6.0 million in 2019 to 6.2 million in 2020 and, to 6.3 million in 2021.

“A more accommodative monetary policy stance and robust labor market helped the U.S. housing market regain its footing in 2019,” said Sam Khater, Freddie Mac’s chief economist. “Improved sentiment, lower financial market volatility and trade headwinds are setting up a favorable economic environment for continued real estate market growth in 2020.”

• The average 30-year fixed-rate mortgage rate is forecast to be 3.8% in 2020 and 2021.
• House price growth will continue to decelerate through 2021 with annual rates of 3.2%, 2.8% and 2.1 % in 2019, 2020 and 2021, respectively.
• Modest increases in home sales and house prices will boost purchase mortgage originations for the foreseeable future. We expect purchase originations to rise steadily to $1,261 billion in 2019, then $1,333 billion in 2020, and finally rising to $1,377 billion in 2021.
• We expect refinance originations to be $846 billion in 2019 before slowing to $650 billion and $475 billion in 2020 and 2021, respectively.
• Overall, expect annual mortgage origination levels of $2.0 trillion in 2020 and $1.9 trillion in 2021.

Written by
admin
View all articles

About Us

The League of Southeastern Credit Unions & Affiliates represents 302 credit unions in Alabama, Florida and Georgia, with a combined total of $175 billion in assets and more than 11.6 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

LSCU Mission Statement

To create an environment that enables credit unions to grow and succeed.

LSCU Vision Statement

To be the trusted advocate and preferred source of information for credit unions.

If you need to reach us, e-mail communications@lscu.coop

Social Channels

Follow us on all major social media platforms.