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 DEC. 20, 2006
Real Estate Market Expected to Rebound in 2007
A chief economist for the MBA (Mortgage Bankers Association), Doug Duncan, predicts the rate for a 30-year fixed mortgage to stay around the 6.5% mark for the remainder of this year, and reach a level of 6.8% by December 2008.


Duncan states that he has optimism regarding a rebound of the real estate market in the coming year. He backs up his predictions with the anticipation of hearty capital expenditures, continuing low interest rates and rising equity.

The NAR (National Association of Realtors) sees sales of existing homes falling to 6.4 million units in the coming year compared to an estimated amount of 6.47 million in 2006. Up to an 8.7% decline in new home sales is predicted by the NAR as a result of scaled-back construction. In 2006, 1.07 million new homes were sold. In the coming year, that number is expected to drop to 975,000.

The average resale price is predicted to go up 1.7% to $227,500 in 2007, and the average price of a new home is predicted to rise 1.3% to $241,000.

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