What will the 12 months encompassing 2017 hold in store for housing?
Inman asked eight different experts to give their take:
- Steve Cook, editor of Real Estate Economy Watch
- Doug Duncan, senior vice president and chief economist at Fannie Mae
- Mark Fleming, chief economist at First American
- Matthew Gardner, chief economist at Windermere
- Svenja Gudell, chief economist at Zillow
- Ralph McLaughlin, chief economist at Trulia
- Rodney Ramcharan, director of research at University of Southern California’s Lusk for Real Estate
- Jonathan Smoke, chief economist at realtor.com
Here’s what they told us.
.We’ve been spoiled with historically low interest rates, which haven’t risen despite threats to do just that over the past few years. No more.
“The kind of rates we were getting earlier this year, down to 3.5 percent — those days are over,” said Cook.
Where will they go?
“We will likely still see volatility in mortgage rates over the next two, three, four months as [President-elect Donald] Trump unveils cabinet members and specific policies he wants,” said McLaughlin.
“I don’t believe we’ll see any pullback until after the inauguration, but even the best-case scenario suggests that the historically low rates that have been in place for the last few years are firmly in the rear-view mirror,” said Gardner. “My forecast is for the 30-year fixed rate to rise above 4.5 percent by year’s end, and worst case scenario, knock on the door of 5 percent.”And the Federal Reserve is due to hike rates, too, which often puts pressure on mortgage rates one way or another. “I think in December we’ll see the Fed raising rates and we’ll see more Fed hikes in 2017, and with that, I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent,” said Gudell.
Inman News asked eight different experts to give their take on what the coming 12 months of 2017 had in store for housing. Read what these experts predict will happen to mortgage rates, affordability, inventory and more at http://www.inman.com/2016/12/06/8-experts-predict-the-2017-housing-market/