By Jann Swanson | Mortgage News Daily
Even as homeownership rates remain at historic lows the mortgage debt on single family homes is increasing, ending seven years of decline. Freddie Mac’s Office of Chief Economist, in its June U.S. Economic and Housing Market Outlook, looked at how, as the housing market is “pivoting toward normalcy,” this new debt will be managed; “who will hold it, at what price, and in what form?”
The report says it is tempting to think that the improving outlook for the economy and jobs will mean an increase in homeownership but the economists say “housing demand is unlikely to trump demographics for several years.” While new households are forming they are also tending to rent and that patterns is likely to continue for several years.
