The housing market is poised for success in 2025, with predictions that Freddie Mac mortgage rates will drop below 6% and stay in the mid-5s for most of the year. The economy is strong, and the Federal Reserve is expected to cut short-term rates three times next year. The capital gains tax exemption is projected to double, benefiting sellers, and a new House Rule aims to make housing more accessible. Southern California median home prices are forecasted to increase 8% to 10% if rates drop and the exemption doubles. More homes are expected to be listed in 2025, with a 20% increase anticipated. The privatization of Fannie Mae and Freddie Mac is likely under the new administration. Mortgage delinquencies may rise as costs increase, but mortgage volume is projected to reach $2.5 trillion. Current mortgage rates are slightly higher than last week, with well-qualified borrowers able to secure various fixed-rate mortgages. The housing market in 2025 looks promising, with a positive outlook for both buyers and sellers.
Source
Photo credit www.dailynews.com
Daily News: Interest Rates Expected to Fall Below 6%, Doubling of Capital Gains Exemption imminent
