With the overall economy just inching along, some experts are
questioning whether the housing market can continue its momentum
throughout the rest of the year. People are beginning to ask questions
Will disappointing economic news adversely impact housing?
Is affordability a major concern in today’s real estate market?
Are we approaching a new housing bubble?
Are mortgage standards too tight? Or have they loosened too much?
Freddie Mac, in their April Economic Outlook, addresses the disappointing economic news and what impact they think it will have on housing:
data darkened the growth outlook for the first quarter of 2016.
However, despite the disappointing economic reports, we still forecast
housing to maintain its momentum in 2016.
down our forecast for economic growth to reflect the recent data for the
first quarter, but our outlook for the balance of the year remains
modestly optimistic for the economy.”
What about real estate?
Freddie Mac was much more optimistic about housing…
maintain our positive view on housing. In fact, the declines in
long-term interest rates that accompanied much of the recent news should
increase mortgage market activity.”
They went on to conclude:
expect housing to be an engine of growth. Construction activity will
pick up as we enter the spring and summer months, and rising home values
will bolster consumers and help support renewed confidence in the
remaining months of this year."