WASHINGTON–Freddie Mac has a robust forecast for the housing industry, predicting that during 2016 sales, housing starts, and house prices will reach their highest levels since 2006 despite inventory and affordability challenges.
Included in the forecast by Freddie Mac:
* Expect the 30-year mortgage rate to remain very attractive throughout the spring homebuying season, staying below 4% until the second half of the year.
* Combined multifamily and single-family housing starts will increase 200,000 units to 1.3 million in 2016.
* House prices will continue to rise, but at a moderating pace, with annual house price appreciation slowing to 4.8% in 2016.
* Total mortgage originations will hit $1,650 trillion due to higher expected house prices.