PHM - Housing market seen strong with 12.1% growth in 2021 house price: Freddie Mac

Freddie Mac's quarterly forecast indicates that the low mortgage rates that have supported the housing market throughout the pandemic are expected to increase later in the year, but just gradually."Of note, high house price growth has been buoyed by increased demand due to low mortgage rates, disposable after-tax income that has risen during the current recession and a major shortage of housing supply relative to our population," chief economist Sam Khater commented.Also, recent home purchase mortgage applications data indicate softening demand."We expect refinance activity to soften as higher mortgage rates dampen activity. Overall, we forecast total originations to be $3.9T in 2021 before declining to $2.6T in 2022," Khater added.Forecasts:FMCC expects low rates and a recovering labor market to be supportive of housing market activity; single-family housing market remains robust, with U.S. house prices increasing 17% Y/Y in May making it the highest 12-month house price growth in its history dating

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Housing market seen strong with 12.1% growth in 2021 house price: Freddie Mac