Existing-home sales in 2017 are expected to grow about 2 percent to 5.52 million, while 2016 is expected to close with a 3.3 percent growth rate and 5.42 million existing homes sold, according to the National Association of Realtors.
The median existing-home price is expected to have increased 5 percent in 2016, and the NAR predicts a 4 percent increase in 2017. Mortgage rates by the end of 2016 are expected to be around 4.6 percent, with the Federal Reserve expected to raise the Fed funds rate a few more times to 1.25 percent, according to the NAR.
"Rents and home prices outpacing incomes and scant supply in the affordable price range has been a prominent headwind for many prospective buyers this year," he said. "Making matters worse, the unwelcoming reality of higher mortgage rates since the election is likely further holding back confidence. Younger households, renters and those living in the costlier West region—where prices have soared in recent months—are the least optimistic about buying."
