SOURCE: Freddie Mac
August 15, 2016 10:30 ET
MCLEAN, VA--(Marketwired - Aug 15, 2016) - Freddie Mac (OTCQB: FMCC) released today its monthly Outlook for August showing that for the first time since 2012, mortgage originations are expected to top $2 trillion in 2016. Low mortgage interest rates are spurring a burst of refinance activity, and strong home sales and house price growth are supporting purchase mortgage activity.
Quote: Attributed to Sean Becketti, Chief Economist, Freddie Mac.
"At the current pace, we're likely to see the mortgage market top $2 trillion in originations for the first time since 2012. And unlike in 2012, when the market was driven largely by refinances, today's market is more balanced between home refinances and purchases; nearly 50-50. This is good news for home sales as we're likely to see the best year in home sales in a decade. This is a good sign for the housing market as it continues to be an even brighter spot in the economy.
"However, the housing market still has challenges, which is reflected in our housing starts forecast. Low levels of inventory across many markets will continue to put upward pressure on house prices for the foreseeable future."
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
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