Listen to the Expert
Fannie Mae’s 2025 Housing Market Predictions: Shared by Rancho Cucamonga Real Estate Broker Li Li Hwang
As part of its latest outlook, Fannie Mae’s economists shared five predictions for the housing market in 2025. They expect:
- Average mortgage rates will decline modestly but remain above 6 percent, with likely bouts of volatility.
- Existing homes sales will remain near 30-year lows, but location matters.
- New home sales will remain a bright spot in the housing market (where they can be built).
- National home price growth will decelerate.
- Multifamily housing will remain in a holding pattern.
“From an affordability perspective, we think 2025 will look a lot like 2024, with mortgage rates above 6 percent, home price growth easing from recent highs but staying positive, and supply remaining below pre-pandemic levels,” said Mark Palim, Fannie Mae Senior Vice President and Chief Economist. “Still, heightened mortgage rate volatility may present opportunities for would-be homebuyers to take advantage of temporary lows, and we may see stretches where housing activity is boosted by lower rates — but, on average, we expect mortgage rates to remain elevated and a hindrance to activity. While we think conditions on a national basis will remain challenging, we’re seeing meaningful regional differences in market conditions, and the homebuying experience — as the adage goes — will continue to be a local one.
~ Above Press Release provided by Fannie Mae on December 16, 2024 ~
For those who are planning to buy a home, please pay close attention to :
- The mortgage rate may up and down
- The home price growth may ease a little bit but not decline
Bottom Line
As the tariff war is approaching with the new administration, higher inflation seems inevitable. Higher inflation means higher price on everything including houses. It may be wise to act sooner because you may save a considerable amount of money when buying your home. Besides, your home will build up equity for you the very day you own it.
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