Housing market continues to rebound as mortgage rates hover at record low

 

30-year fixed mortgage averages expected to be 3.2% in 2020 and 3% in 2021, according to Freddie Mac quarterly forecast.

"Even as the economy faces challenges from the coronavirus pandemic, the housing market has been showing strength,” says chief economist Sam Khater. "Refinance activity is solid and homebuyer demand continues, resulting in increased sales and an acceleration in house price growth."

 

Home sales are expected to increase to 6.2M in 2020 taking cues from historically low mortgage rates.

Refinance originations to be $2.168T in 2020 before falling to $1.24T in 2021.

All told, the forecast expects annual mortgage origination levels to be $3.582T in 2020 and $2.685T in 2021.