Freddie Mac Forecast: Purchases Up, ReFi’s Down in 2022
Mortgage lenders should expect a small uptick in home purchases, while refi’s fall off the fiscal cliff. That’s the finding of the latest Freddie Mac’s latest Quarterly Forecast. Housing demand is expected to remain high, with home sales forecast to reach 6.9 million in 2022, then 7 million in 2023. “As mortgage rates rise, we do expect some moderation in housing demand, causing house price growth to temper. However, the combination of a large number of entry-level homebuyers facing a shortage of entry-level inventory of homes for sale should keep the housing market competitive,” said Sam Khater, Freddie Mac’s Chief Economist. “In 2022, we expect purchase originations to grow from $1.9 trillion in 2021 to $2.1 trillion in 2022 while…