Housing and Interest Rate Forecast, 12/27/2016

2012 2013 2014 2015 2016 2017 2018

Housing Activity (000)
Total Housing Starts 784 928 1,001 1,108 1,162 1,239 1,332
Single Family 537 620 647 713 780 855 961
Multifamily 247 308 355 395 383 384 371
New Single Family Sales 368 430 440 502 565 630 708
Existing Single-Family Home Sales 4,125 4,475 4,338 4,627 4,832 4,826 4,960

Interest Rates
Federal Funds Rate 0.13% 0.13% 0.13% 0.38% 0.44% 1.00% 2.00%
90 day T Bill Rate 0.09% 0.06% 0.03% 0.05% 0.32% 0.92% 1.87%
Treasury Yields:
One Year Maturity 0.18% 0.13% 0.12% 0.32% 0.61% 1.27% 2.28%
Ten Year Maturity 1.80% 2.35% 2.54% 2.14% 1.83% 2.84% 3.61%
Freddie Mac Commitment Rates:
Fixed Rate Mortgages 3.66% 3.98% 4.17% 3.85% 3.66% 4.54% 5.31%
ARMs 2.69% 2.88% 3.02% 2.94% 2.88% 3.79% 4.56%
Prime Rate 3.25% 3.25% 3.25% 3.26% 3.53% 4.00% 5.00%
Data are averages of seasonally adjusted quarterly data and may not match annual
data published elsewhere.

For more forecast details, visit www.HousingEconomics.com.