Barry Habib shares his mortgage prediction from 2025
This year, Habib predicts that the mortgage interest will end the year in the low range of 6%, between the 2025 prediction of Housingwire that the mortgage interest in a range will remain between 5.75% and 7.25%.
Housingwire analysts also predict a rating of 3.5%, less than the 5% growth that is seen in typical years. Habib predicts that the price rating of the house price will be between 4% to 4.5%.
Habib expects the return of 10 years 2025 to end in the range of 3.6% to 3.8%.
Inflation, as measured by PCE, is expected to fall to around 2.6% of 2.8%. The unemployment rate is expected to reach 4.4 to 4.5%, leading to FED rate reductions, Habib predicts.
Habib also discussed the rise of demographic shifts in the market with 19 million new households that were expected in the following decade, namely the majority of the home show that shifts from the baby boomer generation to Gen X. “It is reasonable to assume that Gen Xers will increase in the next 10 years in the next 10 years, probably the decrease of boomers,” he said.
Habib continued: “You need 1.9 million houses per year. How much do we build? Currently 1.37 million houses. It is not an anomaly … no rocket scientist is needed to find out that if you need 1.9 million and you build 1.3 million or 1.4 million, there is a shortage of houses. So, if you believe the laws of the economy, when the supply weighs heavier than demand, the prices tend to rise. Now the straight line, not always, but over time, prices rise. Is housing a good investment? I would say it is. “
