Fannie Mae releases a forecast every month looking ahead for the housing market and the broader economy. According to their most recent economic forecast, there’s reason to be optimistic. For one, the group sees the economy bouncing back this year. The warmer weather and the COVID-19 vaccine rollout will heat up the spring market and second half of 2021.
Economic Forecast Provides Bright Outlook
Fannie Mae also predicts that housing activity will be strong, though it should settle a bit from last year’s accelerated pace. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says the slow down will be modest. “Our latest forecast projects that the continued waning of pent-up demand from last year’s delayed spring home buying season, coupled with a modest rise in interest rates, will likely slow the pace of housing, measured both by the volume of mortgages refinanced and by the pace of home sales,” Duncan said. “However, in our view, a modest slow down in the sales pace is unlikely to prevent year-end 2021 home sales from being higher than 2020.” Click on the link for more information.
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