{"id":1827,"date":"2021-06-30T12:32:45","date_gmt":"2021-06-30T12:32:45","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1827"},"modified":"2021-06-30T12:32:45","modified_gmt":"2021-06-30T12:32:45","slug":"experts-see-horizon-second-half-year","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/experts-see-horizon-second-half-year\/","title":{"rendered":"What Do Experts See on the Horizon for the Second Half of the Year?"},"content":{"rendered":"
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What Do Experts See on the Horizon for the Second Half of the Year?<\/p><\/div>\n

As we move into the latter half of the year, questions about what\u2019s to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what\u2019s on the horizon?<\/p>\n

Mortgage Rates Will Likely Increase, but Remain Low<\/strong><\/h4>\n

Many experts are projecting a rise in interest rates. The latest\u00a0Quarterly Forecast<\/em>\u00a0from\u00a0Freddie Mac<\/em>\u00a0states<\/a>:<\/p>\n

\u201cWe forecast that<\/strong>\u00a0mortgage rates will continue to rise through the end of next year.<\/strong>\u00a0We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.\u201d<\/em><\/p><\/blockquote>\n

However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below\u00a0historical averages<\/a>. Rates remaining low is good news for homebuyers who are looking to maximize their\u00a0purchasing power<\/a>. The same report from\u00a0Freddie Mac\u00a0<\/em>goes on to say:<\/p>\n

\u201cWhile higher mortgage rates will help slow the pace of home sales and moderate house price growth,\u00a0we expect overall housing market activity will remain robust.<\/strong>\u00a0Our forecast has total home sales, the sum of new and existing home sales, at 7.1 million in 2021\u2026.\u201d<\/em><\/p><\/blockquote>\n

Home Price Appreciation Will Continue, but Price Growth Will Likely Slow<\/strong><\/h4>\n

Joe Seydl, Senior Markets Economist at\u00a0J.P. Morgan<\/em>,\u00a0projects<\/a>\u00a0home prices to continue rising as well, indicating buyers interested in purchasing a home should do so sooner rather than later. Waiting for rates or home prices to fall may not be wise:<\/p>\n

\u201cHomebuyers\u2014interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months,\u00a0but we don\u2019t expect them to fall soon, and we believe they are more likely to keep rising.<\/strong>\u00a0If you are looking to purchase a new home, conditions now may be better than 12 months hence.\u201d<\/em><\/p><\/blockquote>\n

Other experts remain optimistic about home prices, too. The graph below highlights 2021 home price forecasts from multiple industry leaders:<\/p>\n

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Home Price Forecasts 2021<\/p><\/div>\n

Inventory Remains a Challenge, but There\u2019s Reason To Be Optimistic<\/strong><\/h4>\n

Home prices are rising, but they should moderate as more housing inventory comes to market. George Ratiu, Senior Economist at\u00a0realtor.com<\/em>,\u00a0notes<\/a>\u00a0there are signs that we may see the current inventory challenges lessen, slowing the fast-paced home price appreciation and creating more choices for buyers:<\/p>\n

\u201cWe have seen more new listings this year compared with 2020 in 11 of the last 13 weeks<\/strong>. The influx of new sellers over the last couple of months has been especially helpful in slowing price gains.\u201d<\/em><\/p><\/blockquote>\n

New home starts are also showing signs of improvement, which further bolsters hopes of more options coming to market. Robert Dietz, Chief Economist at the\u00a0National Association of Home Builders\u00a0<\/em>(NAHB),\u00a0writes<\/a>:<\/p>\n

\u201cAs an indicator of the economic impact of housing, there are now\u00a0652,000 single-family homes under construction. This is 28% higher than a year ago.\u201d<\/strong><\/em><\/p><\/blockquote>\n

Finally, while it may not fundamentally change the market conditions we\u2019re currently experiencing, another reason to be optimistic more homes might come to market: our improving economy. Mark Fleming, Chief Economist at\u00a0First American,<\/em>\u00a0notes<\/a>:<\/p>\n

\u201cA growing economy in the summer months has multiple implications for the housing market. Growing consumer confidence, a stronger labor market, and higher wages bode well for housing demand. While a growing economy and improving public health conditions may also spur hesitant existing owners to list their homes for sale, it\u2019s unlikely to significantly ease the super sellers\u2019 market conditions.<\/strong>\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

As we look at the forecast for prices, interest rates, inventory, and home sales, experts remain optimistic about what\u2019s on the horizon for the second half of 2021. Let\u2019s connect today to discuss how we can navigate the market together in the coming months.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what\u2019s on the horizon? Finish Reading What Do Experts See on the Horizon for the Second Half of the Year?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[38,15,199,135,18,56,158,224,52,83,25,49,170,42,280,228,63,20,375,28,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1827"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1827"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1827\/revisions"}],"predecessor-version":[{"id":1830,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1827\/revisions\/1830"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}