Freddie Mac revises mortgage origination projections upward
Posted on Tuesday, September 1, 2015 at 8:55:42 AM
As the housing market continues to experience an upward swing toward normalcy, Freddie Mac has revised its Insight & Outlook for August of 2015.
The government-sponsored mortgage-backing enterprise moved its estimate for mortgage originations up to $1.45 trillion. Additionally, Freddie Mac moved its projections for mortgages originations in 2016 upward as well to $1.3 trillion. Additionally, Freddie Mac's home sales estimate was also increased to 5.73 million units. This would make 2015 the best year for home sales since 2007. These revisions come as a strong job market and low interest rates continue to drive confident consumers to seek out residential financing and purchase homes.
Freddie Mac also revised its refinance share estimate upward to 46 percent. However, Sean Becketti, chief economist for Freddie Mac, acknowledged that the estimates aren't everything when it comes to figuring out where the housing market will go.
"Statistics by themselves cannot tell us whether housing in a particular market - or the nation as a whole - is overvalued," he said. "At best, affordability statistics wake us up to potential danger. In this way, they are like the signs posted every summer in national parks that indicate the current danger of a forest fire. We recognize when the danger is elevated, but we can't predict for sure if or when someone will accidentally drop a match in the wrong spot."