Industry News

The interest rate roller coaster ride

Part 1: 2005 Real Estate Forecast

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Editor's note: The real estate industry is heading for big change in 2005. Experts once again are predicting slower home sales and easing price appreciation due to an anticipated rise in interest rates. In this Inman News forecast series, we attempt to get a clear picture of the industry next year, including what we can expect from housing numbers, who the industry should be watching and what the best and worst-case scenarios might be for housing in 2005. (See Part 2: Best-case scenario for housing next year; Part 3: Worst-case scenario for housing next year; Part 4: What will happen in 2005? Part 5: 15 people to watch in 2005; and Part 6: Inman News Readers 2005 Real Estate Forecast.) In 2005, interest rates have nowhere to go but up. Economists, lenders, mortgage brokers and others involved in the housing industry can at least agree on that. But they expect the rise to be gradual and don't believe it will drastically impact the nation's housing market. By the end of 2005, ...