{"id":3645,"date":"2021-06-30T05:00:50","date_gmt":"2021-06-30T10:00:50","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/what-do-experts-see-on-the-horizon-for-the-second-half-of-the-year\/"},"modified":"2023-01-04T12:48:52","modified_gmt":"2023-01-04T18:48:52","slug":"what-do-experts-see-on-the-horizon-for-the-second-half-of-the-year","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/what-do-experts-see-on-the-horizon-for-the-second-half-of-the-year\/","title":{"rendered":"What Do Experts See on the Horizon for the Second Half of the Year?"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/06\/29150053\/20210630-KCM-Share-549x300.jpg?w=358&#038;ssl=1\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"What Do Experts See on the Horizon for the Second Half of the Year? | Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear:both;max-width: 100%\" \/><\/p>\n<p>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?<span id=\"more-44640\"><\/span><\/p>\n<h4><strong>Mortgage Rates Will Likely Increase, but Remain Low<\/strong><\/h4>\n<p>Many experts are projecting a rise in interest rates. The latest <em>Quarterly Forecast<\/em> from <em>Freddie Mac<\/em> <a href=\"http:\/\/www.freddiemac.com\/research\/forecast\/20210414_quarterly_economic_forecast.page\" target=\"_blank\" rel=\"nofollow noopener\">states<\/a>:<\/p>\n<blockquote>\n<p><em>\u201c<strong>We forecast that<\/strong> <strong>mortgage rates will continue to rise through the end of next year.<\/strong> We 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>\n<\/blockquote>\n<p>However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/03\/09\/how-upset-should-you-be-about-3-mortgage-rates\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">historical averages<\/a>. Rates remaining low is good news for homebuyers who are looking to maximize their <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/03\/30\/how-a-change-in-mortgage-rate-impacts-your-homebuying-budget\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">purchasing power<\/a>. The same report from <em>Freddie Mac <\/em>goes on to say:<\/p>\n<blockquote>\n<p><em>\u201cWhile higher mortgage rates will help slow the pace of home sales and moderate house price growth, <strong>we expect overall housing market activity will remain robust.<\/strong> Our forecast has total home sales, the sum of new and existing home sales, at 7.1 million in 2021&#8230;.\u201d<\/em><\/p>\n<\/blockquote>\n<h4><strong>Home Price Appreciation Will Continue, but Price Growth Will Likely Slow<\/strong><\/h4>\n<p>Joe Seydl, Senior Markets Economist at <em>J.P. Morgan<\/em>, projects home 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<blockquote>\n<p><em>\u201cHomebuyers\u2014interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, <strong>but we don\u2019t expect them to fall soon, and we believe they are more likely to keep rising.<\/strong> If you are looking to purchase a new home, conditions now may be better than 12 months hence.\u201d <\/em><\/p>\n<\/blockquote>\n<p>Other experts remain optimistic about home prices, too. The graph below highlights 2021 home price forecasts from multiple industry leaders:<br \/>\n<a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/06\/29150055\/20210630-MEM-Eng-1.png?ssl=1\" target=\"_blank\" rel=\"nofollow noopener\"><img data-recalc-dims=\"1\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44642\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/06\/29150055\/20210630-MEM-Eng-1.png?resize=650%2C488&#038;ssl=1\" alt=\"What Do Experts See on the Horizon for the Second Half of the Year? | Simplifying The Market\" width=\"650\" height=\"488\" \/><\/a><\/p>\n<h4><strong>Inventory Remains a Challenge, but There\u2019s Reason To Be Optimistic<\/strong><\/h4>\n<p>Home prices are rising, but they should moderate as more housing inventory comes to market. George Ratiu, Senior Economist at <em>realtor.com<\/em>, <a href=\"https:\/\/www.realtor.com\/research\/weekly-housing-trends-view-data-week-june-19-2021\/\" target=\"_blank\" rel=\"nofollow noopener\">notes<\/a> there 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<blockquote>\n<p><em>\u201c<strong>We 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>\n<\/blockquote>\n<p>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 <em>National Association of Home Builders <\/em>(NAHB), <a href=\"https:\/\/eyeonhousing.org\/2021\/06\/single-family-starts-steady-in-may\/\" target=\"_blank\" rel=\"nofollow noopener\">writes<\/a>:<\/p>\n<blockquote>\n<p><em>\u201cAs an indicator of the economic impact of housing, there are now <strong>652,000 single-family homes under construction. This is 28% higher than a year ago.\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n<p>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 <em>First American,<\/em> <a href=\"https:\/\/blog.firstam.com\/economics\/why-housing-market-potential-strengthened-in-april\" target=\"_blank\" rel=\"nofollow noopener\">notes<\/a>:<\/p>\n<blockquote>\n<p><em>\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<strong>. 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>\n<\/blockquote>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>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<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3646,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-3645","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Do Experts See on the Horizon for the Second Half of the Year?&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/what-do-experts-see-on-the-horizon-for-the-second-half-of-the-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Do Experts See on the Horizon for the Second Half of the Year?&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"As we move into the latter half of the year, questions about what\u2019s to come are top of mind for buyers and sellers. 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