Forecast | October 31, 2019
一本道最新高清无码September was the most volatile month for mortgage rates since the beginning of 2018 with an average week to week change of 11 basis points for the 30-year fixed rate mortgage.
一本道最新高清无码The recent volatility in the market is due to several causes. The outlook for a favorable resolution to the trade dispute between the United States and China changes day-by-day or even hour-by-hour, introducing volatility into financial markets and the benchmark 10-year Treasury yield. The second week of October saw the 10-year Treasury yield rise by nearly 25 basis points from Monday to Friday.
一本道最新高清无码In September 2019, the unemployment rate was 3.5%, the lowest rate since December 1969. Despite these seemingly strong numbers, the possible downside risks have only increased in the past few weeks. The weakness in manufacturing has worsened with the ISM Manufacturing Index reporting the lowest reading in over a decade.
一本道最新高清无码On a positive note, recent statistical releases indicate that the housing market remains on solid ground with housing starts, building permits, existing home sales, and new home sales all significantly outperforming consensus expectations in August.
一本道最新高清无码We forecast that the 30-year mortgage rates will be 3.7% for the remainder of 2019 and will tick up slightly to 3.8% in 2020. The housing market will continue to firm: home sales will rise to 6.0 million for 2019 before increasing to 6.1 million for 2020. House prices will increase 3.3% and 2.8% in 2019 and 2020, respectively.
The low mortgage rate environment led to a surge in refinance mortgage originations. The surge in refinance activity will carry over into next year, with $789 billion and $785 billion in single-family refinance mortgage originations in 2019 and 2020, respectively. Modest increases in home sales and house prices will boost purchase mortgage originations to $1.2 trillion and $1.3 trillion in 2019 and 2020, respectively. Overall, expect annual mortgage origination levels of $2.0 trillion in 2019 and $2.1 trillion in 2020.
一本道最新高清无码PREPARED BY THE ECONOMIC & HOUSING RESEARCH GROUP
一本道最新高清无码Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's Economic & Housing Research group, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the Economic & Housing Research group attempts to provide reliable, useful information, it does not guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution. Alteration of this document or its content is strictly prohibited. ©2020 by Freddie Mac.