2019 was a near-historic year for the housing market, and Fannie Mae projects more of the same in the coming year. With easing trade tensions, growth-friendly fiscal policies and continued consumer spending thanks to strong employment numbers and wage growth, GDP is expected to grow by 1.9% in 2020.
Housing will be a key part of that equation in the near term, Fannie Mae says.
New and existing single-family home sales as well as pending home sales, permits and starts advanced in the third quarter of this year.
According to Fannie Mae senior vice president and chief economist Doug Duncan, “Positive contributions from single-family housing construction, home improvements, and brokers fees pushed residential fixed investment growth to a robust 5.1% annualized pace this past quarter, and we forecast continued but moderating strength as construction activity and home sales growth continue at a slower pace.”
A Look at Mortgage Originations in 2020
On the mortgage front, refinance activity is expected to decline in 2020 to 31% of originations compared to the 37% that’s the projected share for this year. Mortgage rates sit at 3.75% as of November 15th, which is 1% lower than the same time last year. And there’s a growing consensus that rates will remain low or even drop next year.
As for home prices, it’s the same old story: low rates mean low inventory and high prices. housing inventory. Date from Arch Mortgage Insurance, there’s just an 11% for home price declines over the next two years.
Lakeside Title Company Streamlines Work for Lenders
With forecasts calling for a busy first half of the year, you’ll need to focus on acquiring customers and following up with leads. Lakeside Title Company can help by taking the paperwork off your desk. We cater to the finance community, whether you’re a credit union or a bank, by streamlining the refinance title and closing processes.