December 31, 2024
We hope you all are having a great holiday season. With the new year we are always looking to bring the latest predictions concerning the real estate market and the general economy. Of course, this also comes with our annual warning – predictions are futile (adapted from Star Trek). No one can predict the future – but the economists of the world certainly give it a good try every year. So, what do they have to say this year? Let’s start with home prices.
Looking at predictions from Fannie Mae, Red Fin, Fitch Ratings, HousingWire and the National Association of Realtors – it appears that the consensus for home price growth is 3.0% to 4.0% on an annual basis for 2025. This is slightly lower than we are seeing in 2024, but the trend for appreciation is definitely easing. We did not see a single prediction for housing prices to fall in 2025. With regards to home sales, HousingWire sees continued sluggish growth in existing home sales and slightly better growth in new home sales.
Mortgage rates are universally predicted to fall –but not by that much. Most predictions seem to have 30-year fixed mortgage rates nearing 6.0% by the end of 2025. This seems to be conservative as we were close to 6.0% at the beginning of fall this year – though they bounced back quickly towards 7.0% even though the Fed lowered rates one more time in December. Originations of mortgages are expected to rise as rates fall due to rising refinance applications. As for the economy, most are predicting economic growth in 2025 to be in the 2.5% to 3.0% range—fairly close to the results of this year. Again, these are just predictions—so take them with a grain of salt!.
Source: Origination Pro
We are your local neighborhood mortgage loan experts. We live and work in Astoria, Queens NY and surrounding neighborhoods and are dedicated to seeing our community grow and prosper.
AMERIMUTUAL MORTGAGE (NMLS# 148447) Address: 18-33 41st Street, 2nd Floor, Astoria, NY 11105 Tel: (718) 943-9200 Fax: (718) 204 – 0657
Philip Loria
Philip Loria, President (NMLS# 148592)
718-943-9200 Ext. 101
ploria@amerimutualmortgage.com
Benny Loria, Esq.
Benny Loria, Vice President (NMLS#: 900146)
718-943-9200 Ext. 115
bloria@amerimutualmortgage.com