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Increasing Mortgage Debt will need a Home
Thursday, June 25, 2015
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.
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