May 24, 2018 / 6:10 PM / 3 months ago

BRIEF-Freddie Mac Says Home Sales Still On Track To "Squeak Out" A Gain In 2018

May 24 (Reuters) - Federal Home Loan Mortgage Corp :

* SAYS HOME SALES ARE STILL ON TRACK TO “SQUEAK OUT” A GAIN IN 2018, ACCORDING TO FREDDIE MAC MAY OUTLOOK

* SAYS ORIGINATIONS FORECASTED TO FALL ABOUT 6 PERCENT IN 2018 TO $1.75 TRILLION

* SAYS UNDER MAY OUTLOOK, UPTICK IN INTEREST RATES IS EXPECTED TO CONTINUE

* SAYS FUELED BY AN INCREASE IN CONSUMER SPENDING, ECONOMIC GROWTH SHOULD PICK UP TO 3.1 PERCENT IN Q2 AND 2.7 PERCENT FOR FULL YEAR

* SAYS FREDDIE MAC EXPECTS 3 PERCENT RISE IN TOTAL HOME SALES (NEW & EXISTING) THIS YEAR

* FREDDIE MAC, IN MAY OUTLOOK, SAYS DESPITE STRONG DEMAND, LOW SUPPLY CONTINUES TO SLOW SALES GROWTH AND PUT UPWARD PRESSURE ON PRICE APPRECIATION

* SAYS STILL EXPECT SPENDING TO PICK UP IN COMING QUARTERS AS THE FISCAL STIMULUS FROM TAX CUTS FURTHER KICKS IN

* SAYS UNDER MAY OUTLOOK, NEGATIVE IMPACT OF HIGHER MORTGAGE RATES ON REFINANCE ACTIVITY TO OUTWEIGH EXPECTED RISE IN PURCHASE ORIGINATION VOLUME

* SAYS TOTAL HOME SALES FORECASTED TO RISE TO 6.32 MILLION THIS YEAR & TO 6.44 MILLION IN 2019

* SAYS FORECAST MODEST GROWTH IN HOME SALES OVER THE NEXT TWO YEARS

* SAYS FORECAST HOME PRICES TO RISE 7 PERCENT IN 2018, WITH ANNUAL GROWTH MODERATING TO 3.1 PERCENT IN 2019

* SAYS REFINANCE ACTIVITY IS FORECASTED TO DECLINE ANOTHER $175 BILLION IN 2018

* SAYS IN 2018, NEGATIVE IMPACT OF HIGHER MORTGAGE RATES ON REFINANCE ACTIVITY WILL OUTWEIGH POSITIVE FACTORS LIFTING ORIGINATIONS Source text for Eikon: Further company coverage:

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