Home price, ownership rises expected
U.S. home prices will rise steadily and homeownership will expand over the next decade, but restraints on mortgage finance enterprises could imperil those gains, according to five economists from the largest housing trade groups and mortgage-buying companies.
Immigration, population growth, tight inventory and building constraints will fuel demand over the 10-year period beginning in 2004, even as bargain interest rates rise, they said in a report released Wednesday by the Homeownership Alliance.
Despite the recent run-up in home prices, the economists do not expect a housing bubble, a collapse or even substantial reversals in regional markets.
They forecast annual appreciation averaging 5% nationwide over the next 10 years and the homeownership rate topping 70% from its current level of about 68%.
But they also noted that the housing market could be dampened by restrictions on Fannie Mae and Freddie Mac.
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