2016 Real Estate Market Forecast

With the New Year here, many organizations and companies are forecasting how the housing market will perform in 2016. Here are a few predictions.

• Realtor.com believes that 30-year mortgage rates will increase to 4.65% and national housing prices will rise 3% (compared with 6% in 2015).
• According to the Mortgage Bankers Association, new loan originations will jump to$905 billion – up from $821 billion this year.
• The American Institute of Architects is predicting that home improvement projects will likely hit a new high, exceeding the record $325 billion set in 2015.
• BofA Merrill Lynch Global Research expects housing starts to reach 1.275 million.
• According to TransUnion, the mortgage loan serious delinquency rate (defined by the company as ‘the ratio of borrowers 60 or more days past due’) will slide from its current 2.5% to 2.06%.

While the predictions vary, the consensus is that 2016 will be another strong year for the housing market. Please contact me if you need assistance.

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