Freddie Mac May 2017 Outlook

On May 24^th, 2017 Freddie Mac released its monthly Outlook for May, reconfirming the U.S. housing market being on track to cover last year's gains in spite of weak economic growth.

• Mortgage rates have declined a quarter of a percentage point to roughly around four percent. Mortgage rates are expected to rise slightly by the end of 2017.
• Home sales for the first quarter of 2017 have been the highest since 2007. New home sale has also beaten the expectation!
• Current data signify first quarter mortgage originations were about $60 billion higher than expected primarily due to resilience in refinances. Expect 2017 mortgage originations to increase over $200 billion.
• In the first quarter of 2017, 49 percent of borrowers refinanced and took out cash from their home equity! This is up from 44 percent in the fourth quarter of 2016; the highest share since the fourth quarter of 2008, but still below the peak of 89 percent in the third quarter of 2006.

"Despite weak economic growth, housing got off to a good start in 2017 because low mortgage rates have given the spring home buying season a pleasant surprise. Mortgage rates started March just above four percent and have mostly drifted lower since then, even falling below 4 percent. With home sales, housing starts and home values up, 2017 is shaping up to be the best year for housing in over a decade."
Sean Becketti, Chief Economist, Freddie Mac

Bottom Line

Home ownership is an investment! You can leverage against in the future that not only provides shelter and safety but also helps you build your family’s wealth. If you are debating whether or not to purchase a home this year, let’s get together to discuss the opportunities available in today’s market.  It is still a great time for the purchase or sale of a properties.