Because of a weak 4th quarter, moving us backwards after a strong 3rd. It now looks as though we will end this year a full percent point short of the growth we achieved in 2013. The good news is that, moving into 2015 we will still be expecting continual growth, maybe just not as fast as earlier reports.
“The December forecast is relatively little changed from the November forecast. We expect a weaker fourth quarter to follow a stronger third quarter, but we don’t see it as a sign of overall weakness,” said Fannie Mae Chief Economist Doug Duncan.
“The housing market is likely to continue its gradual climb upward next year after a sub-par 2014,” said Duncan. “We anticipate a fairly strong increase in housing starts in response to stronger employment and some improvement in related household incomes.”
“Unlike the beginning of 2014, we are coming into 2015 with rates having been on the decline," said Dan Gjeldum, senior vice president of mortgage lending with Guaranteed Rate. "Inventory levels at least in Chicago (where Guaranteed Rate is headquartered) declined in the fall, so prospective buyers who have been waiting for inventory to hit the market will not only have a surge of inventory, but also have rates near historic lows propelling their search.”