Interest Rates and the Impact on Real Estate in 2015

On a macro level, it appears that many agree that we will begin to see an increase in traditional homebuyers return to the real estate industry in 2015.  After years of a "reorganization" of the housing industry, institutional buyers, hedge funds, private equity, cash players/investors have dominated the acquisition market.  With continued low interest rates forecasted for 2015, a slow return to mortgage financing and pent up demand from qualified buyers, housing should see a gradual shift to the a healthy mix of diversified buyers in the coming year.
Of course interest rates play a huge role in all aspects of our economy, and housing is no exception.  The general view is that rates will remain low and this is very good news for the recovering housing markets and for buyers who require financing to participate.

Housing remains a very local issue with national implications.  This is clearly demonstrated as we observe housing values and trends around the country.  As a nation, rates will need to remain on the lower side for the next 3-5 years so that the  potential to enter/reenter the housing market (especially the millennials) have the opportunity to enter the market and purchase desirable housing that is aligned with their budgetary.
Given that housing and all of the related industries and professions which are tied to the housing market make up such a large part of our economy, the government should continue to facilitate all reasonable avenues to promote strong housing growth and assist the housing market in it's return to a healthy sate of supply and demand.