Freddie Mac Predicts Interest Rate Volatility. Team Thayer Real Estate Advice. #Freddiemac #interestratevolatility
Freddie Mac eased its U.S. Freddie Mac rel conomic and Housing Market Outlook for May today, revealing that low mortgage rates kept affordability high in the first quarter of this year for buyers, but housing markets probably will see interest rates increase for the rest of the year. The outlook credits market participants attempting to anticipate the Federal Reserve's timing around rising short term interest rates as the likely be the cause of the increase. “For the remainder of this year, we're likely to continue to see these mortgage rate swings as market participants try to anticipate Fed timing around rising short term interest rates,” said Len Kiefer, deputy chief economist at Freddie Mac. “Unfortunately, perspective homebuyers may experience bouts of affordability shock in many housing markets." Outlook Forecast: Due to weak first quarter data, revising down the forecast for economic growth for 2015 from 2.6 to 2.3 percent. With tight for-sal...