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Here are our U.S. housing market forecasts for 2017.

Housing markets in a handful of metro areas will continue to sizzle in 2017, while the rest of the country could experience a cooling trend. Mortgage rates will likely hover in the 3.5% range for the short term, but could rise above 4% through the first half of 2017. Loan limits could also rise in some parts of the country next year, in response to rising home values.

Let’s take a closer look at these and other housing market forecasts and predictions for 2017.

1. Home prices nationwide to rise 3% – 5% over next 12 months.

In October, the economic research team at Zillow issued this 12-month forecast for the U.S. housing market: “United States home values have gone up 5.1% over the past

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