Real Estate Finance Projections for 2014: A Roundup
Home sales will rise to 5.9 million units in 2014 from more than 5.5 million in 2013. Home price appreciation as measured on different indices may subside a bit, falling from around 11% this year to 6% in 2014, according to Freddie Mac. (Image: Fotolia.)
The 30-year mortgage rate will rise by 50 basis points to 5% by yearend, according to Freddie Mac’s forecast. The 30-year rate was about 1% higher than it was a year ago in Freddie’s last primary market survey. (Image: Fotolia.)
The purchase-refi origination mix will go from about 60%-40% on average for this year currently to 40%-60% on average for next year, according to Freddie’s forecast. (Image: Fotolia.)
Gross Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities issuance will total more than $1 trillion in 2014, down over $500 billion from 2013, MBS strategists at Bank of America Merrill Lynch are forecasting. (Image: Fotolia.)
Freddie Mac forecasts $25 billion in multifamily issuance for 2014, down from an estimated $28 billion for 2013. Mel Watt as the new head of Freddie’s regulator could change this, though. (Photo: Bloomberg)
Commercial mortgage-backed securities issuance could increase as much as $125 billion from about $90 billion in 2013, according to the extraordinarily bullish Anthony Orso, CEO, Cantor Commercial Real Estate.