Freddie Mac released its U.S. Economic and Housing market Outlook for November, which reveals the home purchase market will strengthen.
Highlights include climbing interest rates throughout 2015, averaging 4.6 percent and rising to 5.0 percent by the end of next year for 30-year fixed mortgages. Total housing starts are also forecasted to increase by 20 percent from 2014 to 2015 and expected to increase home sale by about 5 percent. Meanwhile, single-family origination will fall an additional 8 percent as increases in purchase-money lending are insufficient to offset a drop in refinance.
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