Tuesday, December 4, 2018

Cooling Isn't so Cool for Housing; Sales Retreat; Cash-Out Refi Surge

With both interest rates and home prices rising it is nearly impossible to find a housing forecast that doesn't include the word " cooling ." The November outlook from Freddie Mac is no exception. The company's Economic and Housing Group, in fact, applies that word to the entire issue of economic growth, noting the waning effects of fiscal stimulus and ongoing Federal Reserve tightening of monetary policy. Housing is just the icing, as it were, on the topic. They do offer a positive caveat, if there is such a thing. While the recent negative trends in sales could persist, they believe the market along with the economy will adjust to the shock of higher mortgage rates and resume modest growth. The third quarter GDP came in stronger than expected at 3.5 percent, down 0.7 percent from the previous

from
http://www.mortgagenewsdaily.com/reports/newsletter/2018/11/28/3663

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