Bouyant Real Estate Market Forecast for Rest of Year: Realty Dialogues With Bernard C. Meltzer
market for |the year will be buoyant. It will be characterized by declining mortgage interest rates, high level of activity, and increasing prices.</br></br>Q: Your forecast early this year correctly predicted high interest rates, money shortages, a low volume of construction, and a low level of market activity. You will have to admit that, in the pa9t two months, things have turned around. May T respectfully request your forecast for the balance of the year and for early 1971?</br></br>A: My crystal ball is clear this' time. Things will be looking up for brokers, buyers, builders, and for almost everybody in real estate.</br></br>I expect the FHA and VA mortgage interest rates to decline by one-half of a percent within weeks. FHA discounts will ease considerably for suburban houses and properties in good neighborhoods. Discounts on inner-city properties will only decline a small amount. There</br></br>By the end of the year, conventional mortgage Interest rates will be cut back by about a quarter of I per cent. However, the supply of conventional money for the balance of the year and for early 1971 will not be sufficient to meet all needs.