The Huffington Post released their 2016 market predictions, with data provided by CoreLogic, and their general consensus is that the coming year will bring a decline in refinances and an increase in both home sales and mortgage rates. As the article reads, "expectations for 2016 show that the Fed will probably raise short term interest rates by one percentage point gradually over the year" which will likely "cause mortgage rates to rise by around a half point, to around 4.5% for the 30-year fixed rate mortgage."
The increase isn't likely to push homebuyers out of the market, however, as the Post reports that rents will rise as demand continues to far outweigh supply: "with rental vacancies already at the lowest levels in 20 years, rents should be rising more." As far as increasing housing prices are concerned? Anemic inventory is pushing closing prices up, but that could change should more homeowners take a leap back into the market and list.
That means now a great time to list, as houses are often closing above their asking price due to competitive offers!