Will House Prices Go Down? Housing Market Stung by New Prediction

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Freddie Mac had drastically reviewed its predictions on the rise of home prices in 2024 and 2025.

The Federal Home Loan Mortgage Corporation, better known as Freddie Mac, is predicting that home prices will rise much more modestly in 2024 and 2025 than its experts had previously estimated.At the beginning of the year, Freddie Mac had forecasted that home prices would have increased by 2.8 percent in 2024 and by 2.0 percent in 2025 at the national level. But in its latest monthly outlook, published on Thursday, the government-sponsored corporation has dramatically changed its prediction.

The generation born between 1981 and 1996 has been waiting years for the right moment to buy only to see the financial crisis of 2007-2008 followed by the COVID-19 pandemic. Many got tired of waiting, and they're now trying to get on the property ladder en masse, shaking up the entire market.This pent-up demand for homes is keeping prices high, especially as the U.S. is still suffering from a historic lack of inventory and mortgage rates, which are currently averaging 6.

 

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