Future Forecast Sees Affordability Improvement

Calculating whether or not you can afford to buy a home can be stressful. It’s a major financial transaction and it’s easy to become overwhelmed when considering all the costs, obligations, and responsibilities. The good news is that many affordability indicators are pointing in the right direction for prospective buyers. For starters, most analysts expect that mortgage rates – already hovering just above historic lows – will remain favorable in 2020. Additionally, Freddie Mac’s most recent forecast says home price increases will continue to slow both this year and next. In fact, they’re calling for annual home price growth to fall to just 2.1 percent next year. Sam Khater, Freddie Mac’s chief economist, says the real estate market is in good shape for the foreseeable future. “A more accommodative monetary policy stance and robust labor market helped the U.S. housing market regain its footing in 2019,” Khater said. “Improved sentiment, lower financial market volatility, and trade headwinds are setting up a favorable economic environment for continued real estate market growth in 2020.” Source.

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