Twenty-three housing and economic
experts have told the National Association of Realtors® (NAR) they expect the
post-pandemic economic rebound to continue, with improving job conditions and
stable interest rates in 2021. NAR’s
chief economist Lawrence Yun revealed the results of a 2- person survey last
week at NAR’s second annual Real Estate Forecast Summit. The group of experts
predicted that the Gross Domestic Product (GDP) would grow by 3.5 percent in
2021 and 3.0 percent the following year and unemployment would average 6.2
percent next year, declining to 5.0 percent in 2022. Low mortgage rates will
persist over the next two years, although not at today’s sub-3.0 percent level.
They forecast an increase to 3.0 percent and 3.25 percent in 2021 and 2022,
respectively. Ninety percent of those surveyed said they expect the federal
funds rate to remain at zero next year with a 0.25 percent increase in 2022.