Although housing and mortgage markets will see a reduction in activity in 2016, compared to the booming year we have had in the industry, the picture is not expected to be all bleak.
A Fitch Ratings report found that since housing is becoming more costly, regulators are taking steps to cool the housing markets, therefore restraining mortgage lending growth. Fitch also predicts that home prices will increase at a smaller rate in most countries, but the pace of the increases will likely be unchanged or decline from last year. Home prices are projected to rise 4 to 5 percent in the U.S. this year.
While existing home sales are expected to expand in 2016, the pace of growth will be more moderate, due to collision of pent-up buyer demand and overall affordability and meager economic growth, according to the National Association of Realtors. The national median existing-home price for all of 2015 will be close to 221 thousand 200 dollars, up around 6 percent from 2014. In 2016, existing sales are expected to grow between 5 point 30 to 5 point 40 million)and prices should increase between 5 and 6 percent.