According to the government sponsored enterprise, the 30-year fixed-rate mortgage is now projected to average 4.3% this year, falling from last year’s 4.6%.
This decline is likely to push home sales past 2018 levels, growing to an estimated 5.98 million units this year.
Beyond that, the decline in mortgage rates from last year’s total is expected to drive an increase in refinances in 2019.
“While mortgage rates have risen in recent weeks, they remain lower than where they were a year ago and wage growth has accelerated and is finally growing at the same rate as home prices for the first time in seven years,” Freddie Mac Chief Economist Sam Khater said. “We expect to see the result of these low mortgage rates and stronger wage growth translate into better home sales in the coming months, along…