Today economists for Fannie Mae reported their findings as "durable recovery for housing with homebuilding and construction employment returning to normal around 2016". They haven't changed this opinion much since the beginning of the year, but their reinforcement of these predictions boosts consumer confidence and continues to drive the increase in real estate sales activity we have seen recently, in spite of increase rates.
Freddie Mac also published their intention to taper their subsidation of the housing market, in an attempt to keep real estate growth at a slow but steady pace. A smart move, since we all know that too much growth, too fast, can cause severe affordability problems and overinflation of home prices.
Rates are predicted to continue a slow rise, and most economists agree that for most areas of the U.S. will not reach unaffordable prices until the average rate reaches 7%.
Our summary: the government is showing its strongest confidence level in the economy and the housing market since before the housing boom. Rates continue to keep housing affordable, and it's a great time to buy or sell property!
Dennis Boyle, REALTOR
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