The Bond Market Association is predicting strong home sales and rising mortgage interest rates in 2004.Members of TBMA's economic advisory committee expect that the 30-year mortgage rate will rise to 6.65% by year-end 2003 and that the rate on the 10-year Treasury note will be 5.10%. With strong economic growth averaging 4.2% next year, TBMA is forecasting that home sales will match the 2002 total, but fall short of this year's record-setting pace, which the association estimates could total 7.2 million by Dec. 31. "Though we would expect less of a boost from mortgage refinancing activity in the coming year, based on the panel's medium forecast, total home sales -- both new and existing -- are expected to top the 6.6 million-unit total of 2002," the TBMA forecast says. The association can be found online at http://www.bondmarkets.com.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry