The National Association of Realtors® predicts record home sales in 2004 and interest rates expected to rise
Even with the looming expected rise in interest rates, the National Association of Realtors® (N.A.R.) states that "Unexpectedly strong job growth will buffet the impact of higher interest rates and help to push existing-home sales to a record in 2004."
Further, David Lereah, N.A.R.'s chief economist, says "The economy is moving quickly now and the Fed is likely to raise short-term interest rates on June 30. The market appears to have anticipated the move and has priced it into 30-year mortgage rates, but the cost of financing remains historically low and strong demand will push home sales to a record this year."
N.A.R. is estimating that 30-year fixed-rate mortgages are expected to reach 6.9 percent by the fourth quarter. Mr. Lereah states that he expects housing to be strong because "At the same time, unemployment should drop to 5.3 percent, so we continue to have a very favorable backdrop for housing."
Since our crystal ball broke ..... we will just have to wait and see! In December we will take a look back at the year and see if these predictions did come true!
To read the entire press release, please go here.